As anticipated, the EU Council today agreed to engage in negotiations with the European Parliament for a proposed directive on public country-by-country reporting.
The proposed directive would require multinationals and individual businesses with consolidated revenue of more than €750 million in the last two years to publicly disclose the income tax paid to each EU state and other tax-related information, such as number of employees, revenues, and profit or loss before tax.
The new disclosures would apply regardless of the location of a multinational’s headquarters and include information relating to all the activities of the standalone undertaking or the ultimate parent undertaking, including those of all affiliated undertakings consolidated in the financial statement in respect of the relevant financial year.
Banks are exempt because they already publically disclose country-by-country reporting information.
According to the proposed directive, businesses must report within 12 months from the date of the balance sheet of the financial year in question. Deferral of the disclosure obligation is available in some cases for up to six years. The proposed directive also specifies who bears responsibility for reporting.
Be the first to comment