Taxation and customs union

Country by country reporting

Who?

Multinational (MNE) Groups located in the EU or with operations in the EU, with total consolidated revenue equal or higher than € 750.000.000, will be obliged to file the country-by-country report.

The competent authority of the Member State that received the Country-by-Country Report shall, by automatic exchange, communicate the report to any other Member States.

in which one or more Constituent Entities of the MNE Group are either resident for tax purposes, or are subject to tax with respect to the business carried out through a permanent establishment.

Where?

The Country-by-Country Report has to be filed in the Member State in which the ultimate parent entity of the MNE Group or any other reporting entity is a resident for tax purposes.

The Member State will communicate the report to any other Member States in which one or more Constituent Entities of the MNE Group are either resident for tax purposes, or are subject to tax with respect to the business carried out through a permanent establishment.

What?

The Country-by-Country Report will include information for every tax jurisdiction in which the MNE group does business on the amount of revenue, the profit before income tax, the income tax paid and accrued, the number of employees, the stated capital, the retained earnings and the tangible assets.

By when?

As of 2017, on an annual basis.

Time frame?

The MNE group will have to file a Country-by-Country Report with respect to its reporting fiscal year no later than 12 months after the last day of the reporting fiscal year of the MNE group.

In what form?

MNE groups will file the Country-by-Country report in accordance with the standard template as included in the Action 13 Report of the OECD.

The automatic exchange of information on Country by country report shall be carried out using the standard form. The information communicated shall be provided by electronic means using the CCN network.

Public disclosure?

No. However,this proposal does not preclude that the Commission decides in the future to propose imposing public disclosure obligations on companies. Whether this will happen in the future depends on the outcome of the Impact Assessment of public Country-by-Country Reporting.