The OECD has started an initiative to mitigate international base erosion and profit shifting. Germany is principally supporting the measures. In this context, as measure #13 the OECD has proposed a new set-up of Chapter V of the OECD Guidelines, according to which documentation should follow a masterfile plus local file approach complemented by a country-by-country reporting (CbC or CbyC reporting).
No. The regulatory body of financial institutions has, however, implemented a European wide reporting that is similar albeit less detailed.
The OECD stipulates a start of the CbC Reporting for the year 2016. Implementation in Germany can be expected for financial years beginning in 2016 or 2017, this is yet to be decided. No detailed guidance is provided for the implementation of the new OECD master file/local file approach.
However, tax practice and field audits already incorporate the underlying logic so that an application in practice is likely anyway also for smaller cases. It can be observed that the request for more and more foreign data increases.
Broadly spoken, documentation under the new rules should suffice or exceed current German requirements.