On September 28, the EU Council adopted in the first reading a Directive on the disclosure of income tax information by certain enterprises and branches, also called the Directive on Public Country Reporting (Directive for Public CbC Reporting).
The directive is aimed at increasing corporate transparency of large multinational companies. Corporations with total revenues of more than 1.5 billion euros in two years, whether they are located in the European Union or outside it, will be required to publicly disclose information about income tax in each EU member state and in countries included in the "black list" EU jurisdictions or "gray list" for two consecutive years.
The accounts must be submitted within 12 months from the date of the balance sheet for the relevant financial year. The directive sets out the conditions under which a company can postpone the disclosure of certain information for a maximum of five years.
The EU member states will have 18 months to implement the CB CR Directive into national legislation. Reporting obligations should start from the first financial year, beginning two years and 6 months after the entry into force of the Directive.
