What is the deadline for the data have to be reported to Bundeszentralamt für Steuern.

Reports have to be submitted no later than one year after the end of the fiscal year for which the country-by-country report is being generated, starting with fiscal years that begin after 31 December 2015.

Exception: Incomplete reports pursuant to Section 138a (4) AO shall be sent for the first time for fiscal years that start after 31 December 2016 (see Section 31 EGAO).

Can data be corrected once delivered?

Yes, if you realize that there is inaccurate or incomplete information in the transmitted country-by-country report. Correction messages must be accordingly identified as such.

Who has to submit a country-by-country report?

Country-by-country reports must be submitted by a domestic group parent with headquarters or management in the territory of the country. This domestic group parent must include at least one foreign company or one foreign permanent establishment.

A group parent is a company that, as top management, holds shares in other companies (subsidiaries) and that can exercise this economic influence without this company losing its legal independence.

Does every German business with headquarters or management in the territory of the country have to submit a country-based report?

Country by country reports must be submitted only be companies that are domestic group parents and include at least one foreign business or one foreign permanent establishment. In addition, they must have generated sales of at least EUR 750 million in the past year.

Exceptions: The business is a reporting company pursuant to Section 138a (3) AO or the company is instructed to submit as defined in Section 138a (4) AO.

What is the basis for data exchange to take place?

The submission requirement for the German multinational enterprise is derived from Section 138a AO. Exchange is carried out with EU countries on the basis of the EU Mutual Assistance Law and on the basis of the EU Mutual Assistance Directive of 25 May 2016. Country-by-country reports are exchanged with third countries based on the multilateral agreement signed on 27 January 2016 (CbC MCAA).

What happens if a foreign group parent does not fulfill its obligation to submit the country-by-country report?

If BZSt has not received a country-by-country report on a foreign group parent from the foreign tax authority, then each covered domestic group parent is required to send a country-by-country report for this group.

If a country-by-country report is sent to BZSt by one of these domestic group companies, then this requirement is waived for all other group companies included in the report.

In what format is the data exchanged?

The country-by-country report must be provided as an officially mandated data record that complies with the XML Schema. It is based on the OECD template for country-by-country reports.

The OECD provides a user guide for the XML Schema on its website. It contains both content-based and technical guidelines on preparing the country-by-country report.

Can the country-by-country report be sent in Excel, Word or PDF format?

No, the country-by-country report must be sent in XML format as an officially mandated data record.

Which registration is required to transmit data?

Starting in 2019, registration via the BZStOnline portal (BOP) is required. The plan is to transmit the data to BZSt using the electronic mass data interface ELMA. Most of the affected businesses in Germany already have this registration due to other electronic reports.

An interim solution is planned for the current transmission. During this time, the transmission is permitted only via De-mail (CbCR@bzst.de-mail.de). No separate registration is required at this time.

What do I have to note when using De-Mail?

Information on the registration and use of De-Mails can be found on the website of the Federal Commissioner for Information Technology.

In what language does the XML Schema have to be completed?

The XML Schema should be sent preferably in English. Please note that the information or details contained in table 3 must be sent in English. This is based on Article 2b of the Implementing Regulation (EU) 2015/2378 (incorporated by Implementing Regulation (EU) 2016/1963 of 9 November 2016 (ABl. EU L 303/4)).

How long are the country-based reports stored at BZSt?

BZSt is obligated to store country-by-country reports for 15 years (see Section 138a (7) AO).

Does BZSt need to be informed in advance about which group company will submit the country-by-country report?

No, starting in 2017, the reporting company must be specified on the tax return forms. Therefore, BZSt does not need to be informed in advance about group company will submit the country-by-country report.

Where do I find information on technical questions?

The OECD periodically publishes guidelines and information regarding interpretation issues on their website and in guidelines on implementation.

Is the business subject to reporting requirements itself obligated to send the country-by-country report to BZSt using De-Mail or the mass data interface ELMA?

No, as part of representative authorization in accordance with Section 80 AO, the country-by-country report can also be sent by a representative. In this case, a power of attorney must be attached, providing the business’s data (name, address, tax number). If this information cannot be found in the power of attorney, this data must be additionally specified in the De-Mail. For ease of communication, the power of attorney must be attached as an attachment to each e-mail.

If sent via the ELMA mass data interface, the power of attorney must be submitted separately.