The EU Directive on public country by country reporting (CbCR) which was published in the Official Journal of the EU requires relevant MNEs to disclose publicly the income taxes paid, and other tax-related information such as a breakdown of profits, revenues and employees per country. Such information needs to be disclosed separately for all 27 EU member states and all jurisdictions included in Annex I and Annex II of the European Council conclusions on the EU list of non-cooperative jurisdictions for tax purposes (so-called EU black list and grey list). For all other jurisdictions, it is sufficient for aggregated data to be disclosed.
The rules set out in the directive will apply to both EU-based multinational enterprises (MNEs) and non-EU based MNEs doing business in two or more EU jurisdictions through a branch or subsidiary with total consolidated revenue of more than €750m in each of the last two consecutive financial years.
The directive will enter into force on 21 December 2021 and member states will have to transpose the directive into their national law by 22 June 2023. The first financial year of reporting on income tax information will be the year starting on or after two years and six months after the date of entry into force of the Directive, i.e. the first financial year starting on or after 22 June 2024.
The EU Directive on public country by country reporting (CbCR) which was published in the Official Journal of the EU requires relevant MNEs to disclose publicly the income taxes paid, and other tax-related information such as a breakdown of profits, revenues and employees per country. Such information needs to be disclosed separately for all 27 EU member states and all jurisdictions included in Annex I and Annex II of the European Council conclusions on the EU list of non-cooperative jurisdictions for tax purposes (so-called EU black list and grey list). For all other jurisdictions, it is sufficient for aggregated data to be disclosed.
The rules set out in the directive will apply to both EU-based multinational enterprises (MNEs) and non-EU based MNEs doing business in two or more EU jurisdictions through a branch or subsidiary with total consolidated revenue of more than €750m in each of the last two consecutive financial years.
The directive will enter into force on 21 December 2021 and member states will have to transpose the directive into their national law by 22 June 2023. The first financial year of reporting on income tax information will be the year starting on or after two years and six months after the date of entry into force of the Directive, i.e. the first financial year starting on or after 22 June 2024.
