New developments in the taxation of large multinationals
New developments in the taxation of large multinationals
On 21 December 2021, Directive (EU) 2021/2101 will enter into force, which aims to set new rules for the preparation and publication of reports on the taxation of large multinational companies. Known to the professional community as CbCR (Country by Country Reporting), the reports cover multinational companies with a worldwide consolidated net income of more than €750 million that operate in one or more EU Member States.
The Directive obliges the ultimate parent entity in the group to publish the Report within 12 months of the end of the financial year to which it relates. The Report should be made available free of charge on the website of the ultimate parent entity for at least five consecutive years.
Member States are required to implement the Directive in their national legislation by 22 June 2023, with the new rules to be applied no later than the first day of the first financial year starting on 22 June 2024.