Germany: Draft legislation to implement public country-by-country reporting; update on Pillar Two implementation

To comply with the EU directive, the legislation must be implemented by 22 June 2023.

To comply with the EU directive, the legislation must be implemented by 22 June 2023.

The government published on 30 September 2022 draft legislation (German) to implement the EU public country-by-country (CbC) reporting directive. To comply with the EU directive, the legislation must be implemented by 22 June 2023.

In line with the EU directive, the draft legislation would require certain German-based unaffiliated companies and ultimate parent entities (UPEs) of multinational groups with a consolidated net turnover exceeding €750 million in each of the last two consecutive financial years to publicly disclose certain tax-related information on a CbC basis for financial years starting on or after 22 June 2024.

The reporting obligation would also apply to German-based subsidiaries of non-EU headquartered groups, which are medium or large-sized, or which are established for the sole purpose of circumventing the reporting requirements. In addition, in-scope groups would be allowed to temporarily omit information that would cause a significant disadvantage to the companies concerned, provided they can justify the reason for the omission.

Update on Pillar Two implementation

The government responded (German) [PDF 278 KB] on 17 October 2022 to parliamentary questions in relation to the implementation of the minimum corporate tax rules under Pillar Two.

Key updates include:

  • The government is currently preparing draft legislation to implement the Pillar Two global anti-base erosion (GloBE) rules with a view to start applying the minimum tax rules for financial years beginning on or after 31 December 2023.
  • The draft legislation will follow the latest compromise text for a Council Directive on providing a global minimum level of taxation for multinational groups in the EU. Read an April 2022 report prepared by KPMG’s EU Tax Centre 
  • The government is examining the introduction of a domestic minimum top-up tax.
  • The government will re-evaluate the currently applicable low-tax threshold of 25% for controlled foreign corporation (CFC) purposes once negotiations on the concrete design of the minimum tax rules are completed.

Read a November 2022 report prepared by KPMG’s EU Tax Centre


The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.