Last Updated on May 31, 2021 by LawEuro
The Fiscal Code of Germany
Fourth Part
Executing the taxation procedure
First Chapter
Recording taxpayer data
1st Subchapter
Data relating to civil status and operations
Section 134 (rescinded)
Section 135 (rescinded)
Section 136 (rescinded)
2nd Subchapter
Duties of disclosure
Section 137
The recording for tax purposes of corporations, associations and pools of assets
(1) Taxpayers who are not natural persons shall be obliged to notify the tax office responsible under section 20 and the municipalities responsible for levying non-personal taxes of the circumstances which have a bearing on registration for tax purposes, especially establishment, attainment of legal capacity, change of legal form, transfer of place of business management or registered office, and dissolution.
(2) Disclosure of these reportable events shall be made within one month of their occurrence.
Section 138
Reporting commercial activity
(1) Whoever opens an agricultural and forestry undertaking, a commercial operation or a permanent establishment shall notify the municipality in which this business or permanent establishment is located of such on an officially prescribed form; the municipality shall inform without undue delay the tax office responsible under section 22(1) of the content of the notification. Where responsibility for determining the non-personal taxes has not been conferred on the municipalities, the tax office responsible under section 22(2) shall take the place of the municipality. Any person who takes up self-employment shall notify the tax office with local jurisdiction under section 19 of such activity. The same shall apply for the relocation or discontinuation of a business, permanent establishment or self-employment.
(1a) Traders within the meaning of section 2 of the VAT Act may also fulfil their reporting obligations under subsection (1) above electronically at the revenue authority responsible for VAT.
(1b) In order to simplify the taxation procedure, the Federal Ministry of Finance may determine, by way of ordinances issued with the consent of the Bundesrat, that traders as defined in section 2 of the VAT Act must, when commencing a professional or commercial activity, in addition to the notifications under subsections (1) and (1a) above, provide the revenue authorities with information on the legal and actual circumstances relevant to taxation, using an officially prescribed data set sent via remote data transmission. The conditions under which an electronic transmission may be waived may be stipulated in such ordinances.
(2) Taxpayers whose residence, habitual abode, place of management or registered office is located within the jurisdiction of this Code (domestic taxpayers) shall notify the tax office with local jurisdiction under sections 18 to 20 of the following:
1. the founding and acquisition of businesses and permanent establishments abroad;
2. the acquisition, disposal or modification of holdings in foreign partnerships;
3. the purchase or sale of holdings in a corporation, association or pool of assets whose registered office and place of management are located outside the jurisdiction of this Code, if
a) this leads to holdings amounting to least 10 percent of the capital or assets of the corporation, association or pool of assets or
b) total costs for acquiring all of the holdings exceed 150,000 euros;
4. the fact that the domestic taxpayer can for the first time exercise controlling or decisive influence, directly or indirectly, over the financial, business or company law related affairs of a third-country company, alone or jointly with related parties as defined in section 1(2) of the External Tax Relations Act;
5. the type of economic activity conducted by the business, permanent establishment, partnership, corporation, association, asset pool or third-country company.
In cases where number 3 above applies, direct and indirect holdings shall be added together in one sum. (3) “Third-country company” shall mean a partnership, corporation, association or asset pool whose registered office or place of management is located in states or territories that are not members of the European Union or the European Free Trade Association.
(4) Notifications under subsections (1) and (1a) above shall be submitted within one month of the reportable event.
(5) Notifications under subsection (2) above shall be submitted together with the income tax return or corporation tax return for the tax period during which the reportable circumstances occurred, and no later than 14 months after such tax period ends, using officially prescribed data sets and officially designated interfaces. Domestic taxpayers who are not required to file their income tax returns or corporation tax returns using officially prescribed data sets and officially designated interfaces must submit the relevant notifications using an officially prescribed form unless they voluntarily file their income tax return or corporation tax return using an officially prescribed data set and the officially designated interface. Domestic taxpayers who are not required to file an income tax return or corporation tax return must submit the relevant notifications within 14 months after the end of the calendar year during which the reportable circumstances occurred, using an officially prescribed form.
Section 138a
Country-by-country reports by multinational enterprise groups
(1) After the end of a financial year, an enterprise with registered office or place of management in Germany (domestic enterprise) that prepares consolidated financial statements or that must prepare them pursuant to rules other than tax laws (domestic group parent) shall compile a group country-by-country report for that financial year and submit it to the Federal Central Tax Office if
1. the consolidated financial statements cover at least one enterprise with registered office and place of management in another country (foreign enterprise) or at least one foreign permanent establishment and
2. the previous financial year’s consolidated revenue, as reported in the consolidated financial statements, totals at least 750 million euros.
Subject to subsections (3) and (4) below, the obligation under the first sentence above shall not apply if the domestic enterprise as defined in the first sentence above is included in the consolidated financial statements of another enterprise.
(2) The country-by-country report as defined in subsection (1) above shall contain:
1. an overview, broken down according to tax jurisdiction, of how the group’s business activities are distributed throughout the tax jurisdictions in which its enterprises or permanent establishments are engaged in business activity; to this end, the overview shall state the following information, based on its consolidated financial statements:
a) revenue and other income from business transactions with related parties,
b) revenue and other income from business transactions with unrelated parties,
c) total revenue and other income pursuant to letters a) and b) above,
d) income taxes paid during the financial year,
e) income taxes paid and accrued during the financial year for that financial year
f) profit (loss) before income taxes
g) stated capital,
h) accumulated earnings,
i) number of employees and
j) tangible assets
2. a list of all enterprises and permanent establishments, broken down according to tax jurisdiction, which are covered by the information reported under number 1 above, together with the most important business activities they perform
3. any additional information that the domestic group parent considers necessary to understand the overview under number 1 above and the list under number 2 above.
(3) If the consolidated financial statements of a foreign enterprise, which under the provisions of subsection (1) above would be required to submit a country-by-country report if its registered office or place of management were located in Germany (foreign group parent), cover a domestic enterprise (constituent domestic entity), and if the foreign group parent tasks the constituent domestic entity with submitting a country-by-country report for the group (reporting entity), then the reporting entity shall submit the country-by-country report to the Federal Central Tax Office.
(4) A covered domestic group company shall be required to submit to the Federal Central Tax Office the country-by-country report for a group with a foreign group parent, which under the provisions of subsection (1) above would be required to submit a country-by-country report if its registered office or place of management were located in Germany, if the Federal Central Tax Office has not received a country-by-country report. If a constituent domestic entity submits the country-by-country report, all of the other constituent domestic entities shall be relieved of this requirement. If a constituent domestic entity is unable to submit the country-by-country report by the deadline stipulated in the first sentence of subsection (6) below, in particular because it cannot procure or produce the report, then it shall notify the Federal Central Tax Office accordingly by the deadline stipulated in the first sentence of subsection (6) below while at the same time providing all of the information listed in subsection (2) above that it has at its disposal or that it can procure. If a constituent domestic entity had reason to presume that the country-by-country report would be submitted on time and it subsequently turns out that, through no fault of the constituent domestic entity, this did not occur, then the constituent domestic entity shall fulfil its obligations under the first or third sentences above within one month after the non-submission became known. The first through fourth sentences above shall apply accordingly to a domestic permanent establishment of a foreign enterprise where such foreign enterprise is included in consolidated financial statements as a foreign group parent or as a constituent foreign entity.
(5) In its tax returns, a domestic enterprise shall state whether it is
1. a domestic group parent as defined in subsection (1) above,
2. a reporting entity, or
3. a constituent domestic entity in a group with a foreign group parent.
In cases where number 3 of the first sentence above applies, the domestic enterprise shall state which enterprise is submitting the country-by-country report and to which revenue authority the report is being submitted. If this information is not provided, the constituent domestic entity itself shall be required to submit the country-by-country report by the stipulated deadline. The first through third sentences above shall apply accordingly to a domestic permanent establishment of a foreign enterprise where such foreign enterprise is included in consolidated financial statements as a foreign group parent or as a constituent foreign entity.
(6) The country-by-country report shall be submitted to the Federal Central Tax Office no later than one year after the end of the financial year for which the country-by-country report is to be produced. In derogation of the first sentence above, cases to which the fourth sentence of subsection (4) above applies shall be subject to the deadline stipulated therein. The report shall be submitted using an officially prescribed data set via remote data transmission.
(7) The Federal Central Tax Office shall forward all of the country-by-country reports it has received to the respective competent revenue authorities. If a country-by-country report contains information, as defined in subsection (2) above, for a contracting state to international agreements, the Federal Central Tax Office shall forward the submitted country-by-country report to the competent authority of the respective contracting state, on the basis of such international agreements. The Federal Central Tax Office shall receive the country-by-country reports that are forwarded to it by the competent authorities of the contracting states referred to in the second sentence above, and shall forward such reports to the respective competent revenue authorities. The Federal Central Tax Office may review country-by-country reports as part of its legally assigned responsibilities. The Federal Central Tax Office shall store the country-by-country reports electronically and shall delete them upon the expiration of the 15th year following the year of submission.
Section 138b
Obligations of third parties to notify revenue authorities of relationships between domestic taxpayers and third-country companies
(1) Obligated parties as defined in section 2(1) numbers 1 to 3 and 6 of the Money Laundering Act (notifying entities) shall notify the tax office with local jurisdiction under sections 18 to 20 of any relationships they have established or facilitated between (a) domestic taxpayers as defined in the first sentence of section 138(2) and (b) third-country companies as defined in section 138(3). This shall apply to cases where
1. the notifying entity is aware that, on the basis of the relationship it has established or facilitated, the domestic taxpayer can for the first time exercise controlling or decisive influence, directly or indirectly, over the financial, business or company law related affairs of a third-country company, alone or jointly with related parties as defined in section 1(2) of the External Tax Relations Act, or
2. the domestic taxpayer obtains direct holdings totalling at least 30% of the third-country company’s capital or assets on the basis of the relationship established or facilitated by the notifying entity; other acquisitions relating to the same third-country company shall be included in this calculation to the extent that the notifying entity is aware or should have been aware of such acquisitions.
(2) Separate notifications shall be submitted for each domestic taxpayer and each reportable circumstance.
(3) The following information shall be provided for each domestic taxpayer:
1. the identification number as per section 139b and
2. the business identification number as per section 139c or, if a business identification number has not yet been issued and if the taxpayer is not a natural person, the tax number that applies for the taxation of income.
If the notifying entity is unable to obtain (a) the identification number and (b) the business identification number or tax number, it shall instead provide a substitute form of identification that has been specified by the Federal Ministry of Finance in consultation with the highest revenue authorities of the Länder.
(4) Notifications shall be submitted to the tax office by the end of February in the year following the calendar year during which the reportable circumstances occurred, using an officially prescribed form. Section 72a(4), section 93(1) no 3 and (4) to (7), section 171(10a), section 175b(1) and section 203a shall apply accordingly.
(5) The tax office with local jurisdiction over the notifying entity shall forward the notifications to the tax office with local jurisdiction over the domestic taxpayer in accordance with sections 18 and 20. Section 31b shall remain unaffected.
(6) The domestic taxpayer shall provide the notifying entity with
1. his identification number as per section 139b and
2. his business identification number as per section 139c or, if a business identification number has not yet been issued and if the taxpayer is not a natural person, the tax number that applies for the taxation of income.
Section 138c
Authorisation to issue ordinances
(1) The Federal Ministry of Finance may stipulate, by way of ordinances issued with the consent of the Bundesrat, that notifications under section 138b must be submitted using officially prescribed data sets and officially designated interfaces. Ordinances under the first sentence above may also stipulate that, notwithstanding the first sentence of section 138b(1), notifications must be transmitted to a different revenue authority, which must then forward such notifications to the tax office with local jurisdiction under sections 18 to 20.
(2) If the Federal Ministry of Finance has issued an ordinance in accordance with subsection (1) above, notifying entities may ask the Federal Central Tax Office for the taxpayer’s identification number as per section 139b or the taxpayer’s business identification number as per section 139c. Such requests may list only the domestic taxpayer’s data specified in section 139b(3) or section 139c(3) to (5a), insofar as these data are known to the notifying entity. The Federal Central Tax Office shall disclose the identification number or business identification number to the notifying entity if the data transmitted by the notifying entity correspond to the data stored at the Federal Central Tax Office in accordance with section 139b(3) or section 139c(3) to (5a). The notifying entity may use these identifiers only to the extent that such use is required in order to fulfil tax obligations. The Federal Ministry of Finance may specify the details of this procedure in ordinances issued with the consent of the Bundesrat.
Section 139
Registering operations in certain cases
(1) Whoever seeks to acquire or manufacture goods, the acquisition, manufacture, removal from the manufacturing business or consumption within the manufacturing business of which entails a liability for tax on consumption, shall register this with the competent revenue authority before operations are commenced. The same shall apply to whoever wishes to operate an enterprise to which special taxes on transactions apply.
(2) Conditions with respect to the timing, form and content of the registration may be determined by way of ordinance. Such ordinances shall be issued by the Federal Government where transaction taxes are concerned, with the exception of aviation tax, and otherwise by the Federal Ministry of Finance. Ordinances issued by the Federal Ministry of Finance shall require the consent of the Bundesrat only where beer duty is concerned.
3rd Subchapter
Identifier
Section 139a
Identifier
(1) For the purposes of unambiguous identification in taxation procedures, the Federal Central Tax Office shall issue each taxpayer a uniform and permanent means of recognition (identifier); the taxpayer, or third parties who must submit that taxpayer’s data to the revenue authorities, shall indicate this identifier on applications, declarations or notifications addressed to revenue authorities. The identifier shall consist of a series of digits that may not be constructed or derived from other data relating to the taxpayer; the final digit shall be a check digit. Natural persons shall receive an identification number, and economic actors shall receive a business identification number. The taxpayer shall be informed without undue delay that he or she has been assigned an identifier.
(2) “Taxpayer” for the purposes of this subchapter shall mean anyone who is liable for tax under a tax law.
(3) “Economic actors” for the purposes of this subchapter shall mean:
1. natural persons who are economically active,
2. legal persons,
3. associations.
Section 139b
Identification number
(1) A natural person may not receive more than one identification number. An identification number may only be issued once.
(2) Revenue authorities may process identification numbers if such processing is necessary in order for them to fulfil the functions incumbent upon them or if a legal provision expressly permits or prescribes the processing of identification numbers. Other public entities and non-public entities may, without the consent of the data subject,
1. process the identification number only insofar as (a) such processing is necessary for the purpose of transmitting data between them and revenue authorities or (b) a legal provision expressly permits or prescribes the processing of identification numbers,
2. organise or provide access to their filing systems on the basis of identification numbers only insofar as this is necessary for the regular transmission of data between them and revenue authorities,
3. use the legally collected identification number of a taxpayer to fulfil all of their reporting requirements vis-á-vis revenue authorities, as long as the respective reporting requirements relate to the same taxpayer and the processing of the identification number would be permissible under number 1 above,
4. use the identification number of a taxpayer, collected legally by an affiliated enterprise as defined in section 15 of the Stock Corporation Act or by a company in a bank group, to fulfil all of their obligations to cooperation with revenue authorities, as long as the respective obligation to cooperate relates to the same taxpayer, the entity using the identification number belongs to the same group of companies as the entity that collected the identification number, and the processing of the identification number would be permissible under number 1 above.
Contract terms and declarations of consent which are designed to enable the collection or use of the identification number which is impermissible under the above conditions shall be deemed invalid.
(3) The Federal Central Tax Office shall save with regard to natural persons the following data:
1. identification number,
2. business identification number,
3. surname,
4. previous names,
5. first names,
6. doctor title,
7. (rescinded)
8. date and place of birth,
9. sex,
10. current or last known address,
11. competent revenue authorities,
12. bans on transmission pursuant to the Registration Law Framework Act and the Länder legislation on registration.
13. date of death.
(4) The data listed in subsection (3) above shall be saved in order to
1. ensure that a person has been issued with one identification number only, and that an identification number is not issued more than once,
2. determine the identification number of a taxpayer,
3. distinguish which revenue authorities are responsible for a taxpayer,
4. be able to transfer to the competent offices data which, pursuant to supranational or international law, are to be received,
5. enable the revenue authorities to discharge their statutory responsibilities.
(5) The data listed in subsection (3) above may be processed only for the purposes specified in subsection (4) above. Bans on the disclosure of information under the Federal Registration Act must be complied with and communicated to other parties in cases where the transmission of data is permissible. The third party to whom the data are transmitted shall likewise comply with such bans on the disclosure of information.
(6) When an identification number is to be issued for the first time, the registration authorities shall transmit to the Federal Central Tax Office the following data for each resident registered in the population register as having sole or main residence in their jurisdiction:
1. surname,
2. previous names,
3. first names,
4. doctor title,
5. (rescinded)
6. date and place of birth,
7. sex,
8. current address of the sole residence or main residence.
9. date of moving into and out of the residence,
10. bans on the disclosure of information under the Federal Registration Act.
For this purpose, the registration authorities shall issue a provisional identifier for each resident registered as having sole or main residence in their jurisdiction. They shall transmit this provisional identifier, together with the data under the first sentence above, to the Federal Central Tax Office. Referencing this provisional identifier, the Federal Central Tax Office shall then notify the competent registration authority of the identification number issued to the taxpayer, so that this identification number can be stored in the register, and shall subsequently delete the provisional identifier.
(7) Where data relating to a birth as well as data relating to a person for whom hitherto no identification number has been issued is saved, the registration authorities shall transmit to the Federal Central Tax Office the data pursuant to subsection (6), first sentence, above for the purposes of allocating the identification number. Subsection (6), second to sixth sentences, above shall apply accordingly.
(8) The registration authority shall notify the Federal Central Tax Office of changes to the data referred to in subsection (6), first sentence, numbers 1 to 10 above as well as the date of death in the event of a death, indicating the identification number or, where this has not yet been allocated, the provisional identifier.
(9) The Federal Central Tax Office shall inform the registration authorities where it has specific reason to suspect the incorrectness of the data transmitted to it by the registration authorities.
Section 139c
Business identification number
(1) The business identification number shall be issued upon request of the competent revenue authority. It shall begin with the letters “DE”. A business identification number may only be issued once.
(2) Revenue authorities may process business identification numbers if such processing is necessary in order for them to fulfil the functions incumbent upon them or if a legal provision expressly permits or prescribes such processing. Other public entities and non-public entities may process business identification numbers only insofar as such processing is necessary for the purpose of fulfilling their tasks or business purposes or transmitting data between them and revenue authorities. If a business identification number replaces other numbers, legal provisions regulating transmission by revenue authorities to other authorities shall remain unaffected.
(3) The Federal Central Tax Office shall save with regard to natural persons who are economically active the following data:
1. business identification number,
2. identification number,
3. company name(sections 17 et seqq of the Commercial Code) or name of the enterprise,
4. former company names or names of the enterprise,
5. legal form
6. industry branch number,
7. official municipal code,
8. address of the enterprise, registered office,
9. entry in the register of companies (court of registration, date and number of entry),
10. date on which operations were opened or time of commencement of activity,
11. date on which operations were terminated or time of ceasing of activity,
12. competent revenue authorities.
13. special identifiers in accordance with subsection (5a) below,
14. information on affiliated enterprises.
(4) The Federal Central Tax Office shall save with regard to legal persons the following data:
1. business identification number,
2. identifiers of the legal representatives,
3. company name (sections 17 et seqq of the Commercial Code),
4. former company names,
5. legal form
6. industry branch number,
7. official municipal code,
8. registered office pursuant to section 11, especially place of business management,
9. date of the act of foundation of enterprise,
10. entry in the register of companies, cooperatives or associations (court of registration, date and number of entry),
11. date on which operations were opened or time of commencement of activity,
12. date on which operations were terminated or time of ceasing of activity,
13. date of liquidation,
14. data of removal from register,
15. associated enterprises,
16. competent revenue authorities.
17. special identifiers in accordance with subsection (5a) below,
(5) The Federal Central Tax Office shall store the following data on associations:
1. business identification number,
2. identifiers of the legal representatives,
3. identifiers of the participants,
4. company name (sections 17 et seqq of the Commercial Code), or name of the association of persons,
5. former company names or names of the association,
6. legal form
7. industry branch number,
8. official municipal code,
9. registered office pursuant to section 11, especially place of business management,
10. date of the articles of partnership,
11. entry in the register of companies or partnerships (court of registration, date and number of entry),
12. date on which operations were opened or time of commencement of activity,
13. date on which operations were terminated or time of ceasing of activity,
14. date of liquidation,
15. date of termination,
16. data of removal from register,
17. associated enterprises,
18. competent revenue authorities.
19. special identifiers in accordance with subsection (5a) below,
(5a) The business identification number of every economic actor (cf. section 139a(3)) shall be supplemented with a five-digit special identifier for each of his economic activities, each of his businesses and each of his permanent establishments in order to enable the unambiguous identification of an economic actor’s activities, businesses and permanent establishments in taxation procedures. The Federal Central Tax Office shall assign the special identifier 00001 to the first of an economic actor’s economic activities, businesses or permanent establishments. Each of an economic actor’s additional economic activities, businesses or permanent establishments shall be assigned a separate, consecutively numbered special identifier by the Federal Central Tax Office upon request by the competent revenue authority. The Federal Central Tax Office shall store the following data on each economic activity, each business or each permanent establishment of an economic actor:
1. the special identifier,
2. the economic actor’s business identification number,
3. company name (cf. section 17 et seqq. of the Commercial Code) or name of the economic activity, business or permanent establishment,
4. former company names or former names of the economic activity, business or permanent establishment,
5. legal form,
6. industry branch number,
7. official municipal code,
8. address of the economic activity, business or permanent establishment,
9. register entry (court of registration, date and number of entry),
10. date on which the business or permanent establishment was opened or date on which the economic activity commenced,
11. date on which the business or permanent establishment was closed or date on which the economic activity was terminated,
12. date of removal from register,
13. competent revenue authorities.
(6) The data indicated in subsections (3) to (5a) above shall be saved in order to
1. ensure that a business identification number already issued is not used again for another economic actor,
2. determine the business identification number issued for an economic actor,
3. distinguish which revenue authorities are responsible,
4. allow the transfer to the competent offices of data which, pursuant to supranational or international law, are to be received,
5. enable the revenue authorities to discharge their statutory responsibilities.
(7) The data listed in subsection (3) above may be processed only for the purposes specified in subsection (6) above unless a legal provision expressly provides for other processing.
Section 139d
Authorisation to issue ordinances
The Federal Government shall specify, by way of ordinances issued with the consent of the Bundesrat:
1. organisational and technical measures to ensure tax secrecy, especially to prevent unauthorised access to data protected by section 30,
2. guidelines on the issue of identification numbers pursuant to section 139b and the business identification numbers pursuant to section 139c,
3. time limits upon whose expiration the data saved pursuant to sections 139b and 139c shall be deleted, and
4. the form of and the process of data transfer pursuant to section 139b(6) to (9).
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