Tweet
Members of the European Parliament (MEPs) have voted in favor of new EU country-by-country reporting requirements for multinationals with worldwide turnover of EUR750m (USD850.8m) or more.
On July 4, MEPs approved a draft report on the proposals by 534 votes to 98, with 62 abstentions. They agreed to send the report back to the relevant parliamentary committees to begin negotiations on the first reading of the legislation.
Under the proposals, the income tax information of multinationals with worldwide turnover of EUR750m or more would be published in a common template in each tax jurisdiction in which the firm or its subsidiary was operating. The data would have to be made publicly accessible, for free, on the firm's website.
Each company would also be responsible for filing a report in a public registry managed by the European Commission.
The information would include:
MEPs also supported measures to protect commercially sensitive information, by allowing EU member states to grant exemptions from the requirement to provide one or more pieces of information. The exemptions would be renewed annually and would only be applicable in the jurisdiction of the member state granting the exemption.
The member state would be required to inform the Commission confidentially about the omitted information and provide a detailed explanation for the exemption. The Commission would then publish, on an annual basis, a list of firms that were grated exemptions, along with an explanation of the reasons for such grants.
At the end of the non-disclosure period, the firm would have to publish its tax details retroactively, "in the form of an arithmetic average."
Members of the European Parliament (MEPs) have voted in favor of new EU country-by-country reporting requirements for multinationals with worldwide turnover of EUR750m (USD850.8m) or more. On July 4, MEPs approved a draft report on the proposals by 534 votes to 98, with 62 abstentions. They agreed to send the report back to the relevant parliamentary committees to begin negotiations on the first reading of the legislation. Under the proposals, the income tax information of multinationals with worldwide turnover of EUR750m or more would be published in a common template in each tax jurisdiction in which the firm or its subsidiary was operating. The data would have to be made publicly accessible, for free, on the firm's website. Each company would also be responsible for filing a report in a public registry managed by the European Commission. The information would include: The name of the firm and, where applicable, a list of all subsidiaries, a description of their activities, and their respective geographical locations; The number of employees on a full-time equivalent basis; The amount of the net turnover; Stated capital; The amount of profit or loss before income tax; The amount of income tax paid during the relevant financial year by the firm and its branches resident for tax purposes in the relevant tax jurisdiction; The amount of accumulated earnings; and Whether undertakings, subsidiaries, or branches benefit from a preferential tax treatment. MEPs also supported measures to protect commercially sensitive information, by allowing EU member states to grant exemptions from the requirement to provide one or more pieces of information. The exemptions would be renewed annually and would only be applicable in the jurisdiction of the member state granting the exemption. The member state would be required to inform the Commission confidentially about the omitted information and provide a detailed explanation for the exemption. The Commission would then publish, on an annual basis, a list of firms that were grated exemptions, along with an explanation of the reasons for such grants. At the end of the non-disclosure period, the firm would have to publish its tax details retroactively, "in the form of an arithmetic average."
On July 4, MEPs approved a draft report on the proposals by 534 votes to 98, with 62 abstentions. They agreed to send the report back to the relevant parliamentary committees to begin negotiations on the first reading of the legislation.
Under the proposals, the income tax information of multinationals with worldwide turnover of EUR750m or more would be published in a common template in each tax jurisdiction in which the firm or its subsidiary was operating. The data would have to be made publicly accessible, for free, on the firm's website.
Each company would also be responsible for filing a report in a public registry managed by the European Commission.
The information would include:
- The name of the firm and, where applicable, a list of all subsidiaries, a description of their activities, and their respective geographical locations;
- The number of employees on a full-time equivalent basis;
- The amount of the net turnover;
- Stated capital;
- The amount of profit or loss before income tax;
- The amount of income tax paid during the relevant financial year by the firm and its branches resident for tax purposes in the relevant tax jurisdiction;
- The amount of accumulated earnings; and
- Whether undertakings, subsidiaries, or branches benefit from a preferential tax treatment.
MEPs also supported measures to protect commercially sensitive information, by allowing EU member states to grant exemptions from the requirement to provide one or more pieces of information. The exemptions would be renewed annually and would only be applicable in the jurisdiction of the member state granting the exemption.
The member state would be required to inform the Commission confidentially about the omitted information and provide a detailed explanation for the exemption. The Commission would then publish, on an annual basis, a list of firms that were grated exemptions, along with an explanation of the reasons for such grants.
At the end of the non-disclosure period, the firm would have to publish its tax details retroactively, "in the form of an arithmetic average."
Members of the European Parliament (MEPs) have voted in favor of new EU country-by-country reporting requirements for multinationals with worldwide turnover of EUR750m (USD850.8m) or more. On July 4, MEPs approved a draft report on the proposals by 534 votes to 98, with 62 abstentions. They agreed to send the report back to the relevant parliamentary committees to begin negotiations on the first reading of the legislation. Under the proposals, the income tax information of multinationals with worldwide turnover of EUR750m or more would be published in a common template in each tax jurisdiction in which the firm or its subsidiary was operating. The data would have to be made publicly accessible, for free, on the firm's website. Each company would also be responsible for filing a report in a public registry managed by the European Commission. The information would include: The name of the firm and, where applicable, a list of all subsidiaries, a description of their activities, and their respective geographical locations; The number of employees on a full-time equivalent basis; The amount of the net turnover; Stated capital; The amount of profit or loss before income tax; The amount of income tax paid during the relevant financial year by the firm and its branches resident for tax purposes in the relevant tax jurisdiction; The amount of accumulated earnings; and Whether undertakings, subsidiaries, or branches benefit from a preferential tax treatment. MEPs also supported measures to protect commercially sensitive information, by allowing EU member states to grant exemptions from the requirement to provide one or more pieces of information. The exemptions would be renewed annually and would only be applicable in the jurisdiction of the member state granting the exemption. The member state would be required to inform the Commission confidentially about the omitted information and provide a detailed explanation for the exemption. The Commission would then publish, on an annual basis, a list of firms that were grated exemptions, along with an explanation of the reasons for such grants. At the end of the non-disclosure period, the firm would have to publish its tax details retroactively, "in the form of an arithmetic average."