EC consulted on draft act and annex in relation to tax paid by multinationals, specifically a common template and electronic formats for country by country reports.
The initiative noted that multinational corporations operating in the EU must disclose information on the corporate taxes they pay, which includes contextual information.
This takes form of annual country by country reports, and introduces a common template and electronic formats for reports to progress digitization and accessibility.
Member States are required to draw up, publish and make accessible a report on income tax information regarding the latter of the two consecutive financial years.
Specifically, Member State reporting should take place in each year of which the consolidated revenue on their balance sheet date exceeded a total of €750mn.
EC sets out XHTML (Extensible Hypertext Markup Language) and XBRL (Extensible Business Reporting Language) for machine-readability and commonality.
Undertakings may draw up the report so that all information required is reported on the basis of the reporting instructions for tax purposes as per DAC Dir 2011/16.
EC set out its expectations for undertakings to apply EC's regulation to reports on income tax information for financial years starting on, or after Jan. 1, 2025.
Effectiveness
Comments can be submitted by Aug. 29, 2024.
Dec. 2024 Official Journal
On Dec. 2, 2024, EU CMSN issued final Reg 2024/2952 on templates and formats.
Undertakings shall apply the regulation to reports on income tax information for the financial years starting on or after Jan. 1, 2025; regulation in force on the twentieth day following that of its publication in the Official Journal of EU, Dec. 22, 2024.
Regulators
EU CMSN
Entity Types
Auditor; Corp
Reference
OJ L, 12/2/2024; Reg 2024/2952, 11/29/2024; CP Ares(2024)5581829, PR 8/1/2024; DAC Dir 2011/16; ACD Dir 2013/34; CbC; Citation: Reg 2024/2952;
