The demands on multinationals for more transparency about the amount of profit tax they pay are increasing. The EU has published a directive (EU) 2021/2101) requiring multinationals with activities in the EU to publish their Country-by-Country report. This concerns a report that differs from the private Country-by-Country report prepared in accordance with the OECD model, although the EU public Country-by-Country report is similarly based on a minimum consolidated (worldwide) group turnover of EUR 750 million.
The directive is currently being implemented by EU Member States, with minor differences arising in its implementation. Additionally, differences have arisen with regard to the report and how it should be publicly disclosed. There are also differences for groups with an ultimate parent company in the EU versus those with an ultimate parent company in a non-EU country. The reporting obligation applies in principle to financial years commencing on or after June 22, 2024. However, some EU Member States have deviated from this and have made the obligation apply as of the 2023 financial year.
On March 1, 2024 the Netherlands published the Decree Implementing the Profit Tax Disclosure Directive. The webinar will address the obligations for multinationals with regard to the introduction of public Country-by-Country Reporting. The differences in implementation and relevant timelines will also be discussed.
