"Jahressteuergesetz 2020" and CbCR

- Due to the elimination of the clause "based on the consolidated financial statements "*, it must be assumed that the group of companies to be included in the CbCR will increase in the future.
- Unfortunately, no exact date of application is provided, but only refers to "open cases "**.
- The legislator is following the OECD guidelines here, which have not yet been fully implemented in Germany.

"Based on the consolidated financial statements"

The OECD recommendation and the EU requirement that the CbCR should not only be based on the scope of the consolidated financial statements is the basis of this legislative amendment to section 138a (2) number 1 AO. This should also include companies that are not included in the consolidated financial statements, e.g. due to materiality reasons. The current wording of the law restricts this by using the phrase "based on the consolidated financial statements", which has now been corrected.

Since systems and data sources not relevant for the consolidated financial statements will also be used in the future, reference should be made to the OECD recommendations and EU requirements regarding Table 3, in which explanations on the data bases are to be included.

"Open cases"

Unfortunately, these "open cases" are not precisely defined in § 31 EGAO. Therefore, it could be assumed that only companies are affected which have not yet completed their transmissions. We do not currently assume that there is an obligation to make corrections, but only see these changes as relevant for future transmissions.

What is considered an "open case" would therefore depend on the publication date of the Annual Tax Act 2020.

OECD requirements

This amendment is due to the previous failure to fully implement the OECD requirements. For German companies, this increases the group of companies to be included. However, this is only an adjustment to international requirements, which leads to more comparability and consistency in CbCR reporting.

Effects for groups obliged to CbCR

Since companies whose data is not available at group level or whose data is stored in systems and data sources not previously connected to the CbCR system must now also be taken into account, this additional information must be included in the CbCR.

In the short term, affected groups can resort to manual data collection and entry, but in the medium and long term, a direct connection to the existing CbCR system is recommended.

Of course, it must also be ensured from a procedural point of view that the corresponding data of the additional companies are available in due time, complete and correct, so that they can become part of the CbCR report.


* Article 27 Annual Tax Act 2020 (JStG 2020) of 21 December 2020, Federal Law Gazette Volume 2020 Part I No. 65, issued at Bonn on 28 December 2020.

** Article 29 Annual Tax Act 2020 (JStG 2020) of 21 December 2020, Federal Law Gazette Volume 2020 Part I No. 65, issued in Bonn on 28 December 2020.

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