Germany: Legislation to implement country-by-country reporting directive

Legislation to implement EU Directive 2021/2101 published in the federal law gazette

Legislation to implement EU Directive 2021/2101 published in the federal law gazette

Legislation to implement EU Directive 2021/2101—introducing “public” country-by-country (CbC) reporting for certain undertakings and branches—was published in the federal law gazette on 21 June 2023.

The legislation regulates the obligations to prepare, disclose, and audit income tax information reports. Certain large, multinational companies must prepare and disclose an annual income tax information report in accordance with the new sections 342 et seq. inserted into the commercial code. The report contains, among other things, country-specific information on income, pre-tax profit, and taxes. The auditor must check whether the previous year’s report has been disclosed.

The legislation also amends other provisions of the commercial code (not relating to the income tax information report). For example, the legal definition of the term "affiliated company" in section 271 (2) HGB has been amended.

The provisions on the income tax information report are applicable for the first time for a financial year beginning after 21 June 2024. Different dates of application have been specified for the other provisions.

Read a June 2023 report prepared by the KPMG member firm in Germany



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