Not only the substantive legal design of the global minimum tax causes difficulties. In addition, there are procedural complications in connection with the preparation and submission of the GloBE Information Return (Minimum Tax Report). The GloBE Information Return is the future tax return for purposes of the global minimum tax. We explain what peculiarities occur.

1. The Globe Information Return

1.1 Compulsory submission

§ 75 MinStG governs the obligation to prepare and submit the GloBE Information Return for each operating unit taxable under § 1 (1) sentence 1 or paragraph 2 MinStG. Affected companies based in Germany must for the first time digitally prepare the new GloBE Information Return (minimum tax report) and a German minimum tax application by 30 June 2026 for 2024 and submit it to the Federal Central Tax Office (BZSt). The BZSt forwards the GloBE Information Return to the competent tax office.

However, the deadline of 18 months applies only to the initial submission of the minimum tax report. For the following financial years, the deadline shall expire at the latest 15 months after the end of the financial year. Submission shall be made electronically via the officially provided interface. For this purpose, each affected group must designate a group sponsor (UPE) and notify the BZSt digitally by 28.02.2025. The legal basis for the GloBE Information Return in Germany is §§ 75 MinStG. The minimum Eu declaration shall contain a self-calculation and, where applicable, a zero declaration.

If one operating unit assumed that another operating unit would submit the minimum tax report on time on behalf of the entire group, but it is later determined that this did not happen, it must meet its obligations within one month of being aware of the non-tax.

1.2.

The obligation to submit the GloBE Information Return is waived by law (§ 75 paragraph 2 MinStG) in two cases. The first case is where the minimum tax report has been submitted by the ultimate parent company or by a business unit authorised by it to transmit it in its respective country of location. The further case is if there is an effective international agreement which provides for an automatic exchange of minimum tax reports by the respective local state with the competent authority of the Federal Republic of Germany for the financial year.

1.3. Effects of safe-harbour regulations on the GloBE Information Return

Groups should apply the safe-harbour regime for as long as possible in the first three years. This allows the Group to adopt the minimum tax report from the country-by-country report dataset with a few additional data points. As a result, the minimum tax is deemed to be zero. This avoids provisions. Even then, however, companies abroad must create and submit a new local GloBE Information Return.

2. procedural difficulties

2.1 Responsibility for Completeness and Correctness

The GloBE Information Return is next to the local tax assessment. This gives rise to particular difficulties. In principle, each unit of a group is obliged to submit the GloBE Information Return. This duty of submission is waived if the UPE or a so-called Designated Filing Entity takes over the submission for the entire group. If this makes use of the possibility, it is obvious that only she is represented by her financial director for the completeness and correctness of the declaration.

However, it may also be that some group company is designated as a Designated Filing Entity that is not affected by the top-up tax itself. The question arises who is then responsible for the correct submission of the GloBE Information Return. The Designated Filing Entity or the group and thus the UPE would be considered. The group’s responsibility would prevent responsibility from being shifted to a destitute society in a hard-to-reach jurisdiction.

2.2. Measure of Care in the Creation of the GloBE Information Return

In addition, it does not mean that the UPE actually has everything under control. International corporations regularly have many subsidiaries in different countries. Not infrequently, a group operates in countries where the parent company often has no effective control.

Nevertheless, the submission of the GloBE Information Return requires detailed information about each individual Group unit worldwide. The question therefore arises as to what standard of care applies. If no rules to the contrary are adopted, it would be obvious in the German area to refer to the standard of § 150 paragraph 2 AO. Then the GloBE Information Return would have to be given truthfully to the best of our knowledge and belief.

In view of the considerable compliance effort that the GloBE Information Return causes, it is desirable not to impose excessive demands on the standard of care. In the meantime, the original sanction of 5% of the annual turnover of the group unit concerned in the case of late or incorrect delivery of GloBE Information Return was usefully waived. Rather, Article 46 of Directive (EU) 2022/2523 only provides that penalties relating to the delivery of the GloBE Information Return shall be effective, proportionate and dissuasive. In this respect, the national legislator therefore has a certain margin of manoeuvre. This should take into account the difficulties for compliance in the global group within the scope of the due diligence measure.

2.3 Duties to cooperate

Another problem is that the UPE regularly has limited opportunities for participation due to an effective information deficit. Despite the limited possibilities for cooperation described, the taxpayer is subject to the extended duty of cooperation applicable in foreign matters. The BZSt is limited in its cross-border measures. On the other hand, however, the BZSt must carry out its duty of investigation. Additional mechanisms for the exchange of information and cooperation between financial administrations are necessary.

Corresponding new information exchange possibilities are provided for in § 75 paragraph 4 of the MinStG. It concerns the case that a German minimum tax report contains data for another territory. The Federal Central Office for Taxes then forwards the minimum tax report received to the competent authority of this tax territory. However, this only applies if the Federal Republic of Germany and this tax territory are obliged by a relevant international agreement to provide mutual automatic information on minimum tax reports between their competent authorities.