Germany has implemented the OECD’s Pillar Two framework through the Minimum Tax Act (Mindeststeuergesetz, MinStG), effective from 1 January 2024. The legislation aligns with the EU Minimum Tax Directive (2022/2523) and introduces a Qualified Domestic Minimum Top-up Tax (QDMTT) as well as filing and reporting obligations for German constituent entities.
Applicability and Structure
The provisions apply to multinational enterprise groups with consolidated revenue of €750 million or more, provided that at least one group entity is located in Germany. Such groups must designate a German “minimum tax group” (Mindeststeuergruppe) and appoint a group head (Gruppenträger) in accordance with § 3 MinStG.
Depending on the group structure, the group head may be:
- The ultimate parent entity (if located in Germany)
- A domestic intermediate parent entity
- A nominated German group entity
- The economically most significant German entity, by default
Notification Requirement under § 20 MinStG
Under § 20 MinStG, the group head must electronically notify the German Federal Central Tax Office (BZSt) about:
- The designation of the German group head
- Names and tax IDs of the head entity and UPE
- Group structure, fiscal year, and accounting standards
- Contact details of the filer or representative
The statutory deadline for the notification is two months after the end of the fiscal year. For groups following the calendar year, this results in a first-time deadline of 28 February 2025.
Notifications must be submitted via the BZSt’s electronic interface in XML format. The notification is a formal prerequisite for later filing obligations under the Minimum Tax Act.
Missed the Deadline?
Even if the original deadline has passed, a subsequent notification remains possible and advisable. While the MinStG provides for administrative sanctions in cases of non-compliance, a late filing may help mitigate regulatory concerns and support constructive communication with the authorities. The notification obligation under § 20 MinStG should therefore be fulfilled as soon as practicable, even if delayed.
No Deferral in Germany
Although the international debate continues as to whether Pillar Two implementation should be postponed in individual jurisdictions, Germany has not suspended the application of the rules. The Minimum Tax Act is fully in force, and relevant compliance requirements apply without restriction from 2024 onward.
WW+KN, a Baker Tilly Company, advises multinational groups on all aspects of the German implementation of Pillar Two, including:
- Analysis of group structures under § 3 MinStG
- Determination and registration of the German group head
- Preparation and electronic submission of § 20 MinStG notifications
- Coordination of subsequent reporting obligations under the Minimum Tax Act
For further information, please contact us at: office@wwkn.de
