European Parliament backs proposal for Directive on Public Country-by-Country Reporting
On July 4, 2017, the European Parliament backed a proposal requiring multinationals to report their taxes on a ‘country-by-country’ basis.
The legislation should improve tax transparency by making public the taxes paid by multinationals with regard to the country where those taxes were paid. The income tax information of multinational enterprises (with worldwide turnover of at least EUR 750 million) should be publicly published in a common template in each jurisdiction in which the firm or its subsidiary is based.
The European Parliament, nevertheless, agreed on some exemptions to protect commercially-sensitive information.
The Council of the EU must now adopt its own position on the proposal. This issue should be addressed by the Council in October, 2017.
Read the Press Release.