On Thursday 11 November, the European Parliament adopted the directive designed to increase public country-by-country reporting (CBCR), adopting the position of the Council of the European Union at first reading.
According to the inter-institutional compromise agreed in June (see EUROPE 12737/20), companies operating in the EU with an annual turnover of more than €750 million will have to disclose tax information (turnover, net profits, number of employees, income taxes paid) broken down by country. This information will have to be disclosed for each EU Member State on an annual basis.
The reporting obligation will apply to activities in third countries on the blacklist of non-cooperative jurisdictions for tax purposes and to third countries that have been on the ‘grey’ list of countries with certain tax transparency commitments for at least two years (see EUROPE 12805/4).
For five years, a company will be able to omit certain sensitive accounting data, the disclosure of which would be detrimental to its commercial position.
Member States will have 18 months to comply with the directive after its publication in the Official Journal of the EU.
See the legislative text: https://bit.ly/30mo60L (Original version in French by Mathieu Bion)