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EU Country-by-Country tax Reporting Directive (EU Directive 2016/881)

EU Current 2016

Country-by-country reporting is required from EU credit institutions (banks), extracting and logging industries and multinational companies. This will ensure that trust in the financial sector is regained. On 12 April 2016, the Commission adopted a proposal for a Directive which imposes on EU and non-EU multinational groups the publication of a yearly report on the profit and tax paid and other information.

Issuer name

EU

More information

The proposal will amend the Accounting Directive (Directive 2013/34/EU) to ensure that large groups publish annually a report disclosing the profit and the tax accrued and paid in each Member State on a country-by-country basis. This information will remain available for five years. Contextual information (turnover, number of employees and nature of activities) will enable an informed analysis and will have to be disclosed for every EU country in which a company is active, as well as for those tax jurisdictions that do not abide by tax good governance standards (so-called tax havens). Aggregate figures will also have to be provided for operations in other tax jurisdictions in the rest of the world. The proposal has been carefully calibrated to ensure that no confidential business information would be published.

Organizations covered by the instrument

Large private and listed companies

Target organization notes

MNE Groups multinationals operating in the EU with global revenues exceeding EUR 750 million a year. The same rules would apply to non-European multinationals doing business in Europe. In addition, companies would have to publish an aggregate figure for total taxes paid outside the EU. 

Industry scope

All/none specified

Disclosure venue

country-by-country report

ESG coverage- G (Governance)

Accountability, Anti-Corruption and Anti-Competitive Behaviour

Status

Current

Country

EU

Region

Europe

Date of publication

2016

Issuer type

Governments (governmental department, agency)

Reporting requirements

Public law and regulation

Mandatory or voluntary

Mandatory

The geographical scope

International/regional (EU)

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