Business tax Economic activity of German multinational enterprises, 2020, in Germany and worldwide

otes on the data and interactive maps

Enterprises operating multinationally compile country-by-country reports for the fiscal authorities, which use them to check cross-border corporate structures. The compilation of country-by-country reports is based on the results of the project "Base Erosion and Profit Shifting" (BEPS) that were published in late 2015 by the OECD (Organisation for Economic Co-operation and Development). In the project, a package of measures was proposed against base erosion and profit shifting. The data specified in Section 138a (2) of the German Fiscal Code are collected for the statistics on country-by-country reports of multinational enterprise groups. The processing of those data is carried out centrally by the Federal Statistical Office.

The obligation to provide information applies to multinational enterprises meeting specific criteria pursuant to Section 138a (1) of the German Fiscal Code. This includes, among other things, consolidated turnover of 750 million euros or more. As regards Germany, the statistics contain only enterprise groups that are located, or whose management is located, in Germany.

The interactive maps below contain information on the economic activity performed by German multinational enterprises in Germany and worldwide.

More information is contained in the statistical report "Statistics on country-by-country reports of multinational enterprise groups 2020" (only in German) and the press release of 27 June 2022 regarding the first-time evaluation of the country-by-country reports for reference year 2018.

Multinational enterprises – activity in Germany

Map 1 below shows the number of German multinational enterprises in the Länder. Enterprises are assigned to Länder depending on where they, or their management, are located. Most of the German multinational enterprises are located in Nordrhein-Westfalen (109), followed by Baden-Württemberg (78) and Bayern (76).

Map 1: German multinational enterprises, 2020, by Land

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Map 2 below shows the intra-German distribution of the amount of turnover generated worldwide by German multinational enterprises by Land. Enterprises are assigned to Länder depending on where they, or their management, are located. For example, over 1.1 trillion euros of worldwide turnover and other proceeds were generated by enterprises from Nordrhein-Westfalen.

Map 2: Turnover and other proceeds of German multinational enterprises, 2020, by Land

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Map 3 below shows the intra-German distribution of the amount of annual profit or loss generated worldwide by German multinational enterprises by Land. Enterprises are assigned to Länder depending on where they, or their management, are located. The multinational enterprises located in Bayern generated worldwide annual profit or loss before income tax of over 48 billion euros.

Map 3: Annual profit or loss before income tax of German multinational enterprises, 2020, by Land

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Multinational enterprises – worldwide activities

Map 4 shows the number of entities of German multinational enterprises in the individual countries. In Germany, for example, the number of entities reported is 18,952 of a worldwide total of 55,501.

Map 4: Entities of German multinational enterprises, 2020, worldwide

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Map 5 shows the number of persons employed by German multinational enterprises in the individual countries. More than 4.2 million of the total of roughly 9.6 million people employed worldwide work in Germany. The USA rank second with roughly 670,000 persons employed by German multinational enterprises, followed by China (roughly 417,000).

Map 5: Persons employed by German multinational enterprises, 2020, worldwide

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Map 6 shows the amount of turnover and other proceeds generated by German multinational enterprises in the individual countries. Turnover and other proceeds of over 2.2 trillion euros (of a worldwide total of 4.6 trillion euros) was generated in Germany alone, followed by the USA (roughly 534 billion euros) and China (203 billion euros).

Map 6: Turnover and other proceeds of German multinational enterprises, 2020, worldwide

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Map 7 shows the amount of annual profit or loss (before income tax) generated by German multinational enterprises in the individual countries. Germany ranks first with annual profits of 70 billion euros generated in 2020, followed by China (18 billion euros), and the Netherlands (8 billion euros). Worldwide annual profits totalled just under 145 billion euros.

Map 7: Annual profit or loss before income tax of German multinational enterprises, 2020, worldwide

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Map 8 shows the amount of tax on profits paid by German multinational enterprises in the individual countries. Tax on profits paid in Germany include income tax, corporation tax and trade tax. The value of tax on profits paid is over 1 billion euros in Germany (just 18 billion euros), China (roughly 4.2 billion euros) as well as the USA (roughly 3.2 billion euros) and three other countries.

Map 8: Tax on profits paid by German multinational enterprises, 2020, worldwide

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The results for subsequent years will be released annually.