Country-by-country reporting proposed by the European Commission

The European Commission is introducing public reporting requirements for the largest companies operating in the EU.

Multinationals with global revenues exceeding €750m a year will be required to publish annual reports disclosing the profit and the tax accrued and paid in each member state on a country-by-country basis. The information will remain available for five years.

Contextual information including turnover number of employees and nature of activities will have to be disclosed for every EU country in which a company is active as well as for tax jurisdictions that do not operate 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 same rules will apply to non-European multinationals doing business in Europe. In addition companies will have to publish an aggregate figure for total taxes paid outside...