Germany Issues a Draft Regulation for GIR Filing

On September 29, 2025, the Federal Ministry of Finance opened a consultation on a Draft Regulation for the implementation of the Minimum Tax Act. The consultation is open until October 6, 2025. This provides for compliance rules for the exchange of the GIR, simplified reporting and the completion of the GIR to reflect the OECD Guidance. 

Exchange of GIR Information

Section 2 of the Draft Regulation provides for the exchange of GIR information as provided in the OECD GIR Guidance. This applies targeted approach to the exchange of information for each MNE Group, where:

– The jurisdiction of the UPE is provided with all of the GIR information;

– Jurisdictions with taxing rights under the GloBE Rules are provided with the sections of the GIR that relate to the ETR and Top-up Tax computation, allocation and attribution for those jurisdictions in respect of which they have taxing rights. This includes taxing rights under an IIR (eg an IPE/POPE), the UTPR or under a QDMTT. Jurisdictions with a UTPR taxing right but which are not allocated any UTPR tax only receive the UTPR information; 

– QDMTT-only jurisdictions are provided with Section 1 of the GIR (MNE Group Information) except for the High-level summary in Section 1.4.

– All implementing jurisdictions where Constituent Entities of the MNE Group are located are provided with general information and the corporate structure, which covers all the data points necessary to verify whether they have any taxing rights over any other jurisdiction under the GloBE Rules.

Transitional Simplified Reporting

Section 3 of the Draft Regulation applies the OECD Transitional Simplified Reporting Framework.

Instead of providing detailed supporting information for GloBE calculations at entity level, this allows an MNE group to elect for a transitional simplified jurisdictional reporting framework for all Fiscal Years beginning on or before December 31, 2028,  but not including a Fiscal Year that ends after June 30, 2030.

Where the MNE Group has elected the simplified jurisdictional reporting framework, the MNE Group is not generally required to report all adjustments to the Financial Accounting Net Income or Loss, current tax expense or deferred tax expense on an entity basis and all adjustments can be reported on a net basis.

It should be noted that the transitional simplified jurisdictional reporting framework does not apply for jurisdictions where a Top-up Tax liability arises and needs to be allocated on an entity basis. In this case, MNE Groups are required to report relevant adjustments made to determine each entity’s GloBE Income or Loss and Adjusted Covered Taxes.

The Draft Regulation states that in order to elect for the Transitional Simplified Reporting Framework MNEs must have:

– An accounting system that facilitates a jurisdictional approach and enables them to
accurately and reliably undertake the GloBE calculations as required under the GloBE Rules, including identifying the correct location for each CE and applying the rules on a CE-by-CE basis where relevant to the GloBE ETR and Top-up Tax calculation;

– A process in place which reliably allocates accounting information to jurisdictions and ensures aggregation into the Consolidated Financial Statements; and

– A process in place to identify all GloBE-relevant adjustments in each jurisdiction on an item-by-item basis and to identify a particular item as belonging to a CE where the identity of the CE is relevant to the accuracy of the GloBE adjustment.

GIR Completion

Section 4 of the Draft Regulation implements the OECD Administrative Guidance on Article 8.1.4 and Article 8.1.5 of the OECD Model Rules. This provides that groups can use a single source of information to complete each section of the GIR, which is the GloBE Model Rules and Commentary when multiple jurisdictions have taxing rights under the GloBE Rules.

An exception to this is for a jurisdiction or subgroup that is eligible for the QDMTT Safe Harbour (and where the switch-off rule does not apply) and for a jurisdiction or subgroup where only one jurisdiction has taxing rights under the GloBE Rules in respect of that jurisdiction or subgroup. In this case, the detailed computations for that jurisdiction or subgroup must be completed based on the domestic legislation of the QDMTT Safe Harbour jurisdiction or the jurisdiction that has taxing rights.  

When the single source used to complete the GIR results in using different data
points than those used under the local legislation of an implementing jurisdiction, MNE Groups are also required to report the impact of those differences in the GIR.