Wednesday, 20 December 2017 14:37

Multinationals should publicly disclose how much tax they pay, and where

- Multinationals should publicly disclose how much tax they pay, and where
- Disclosure includes taxes paid outside the EU
- Measures embrace companies with worldwide turnover of €750 million or more

Large firms must make information about the tax they pay in each country in the world publicly available, say MEPs after a debate and vote in plenary, Tuesday.
They backed a proposal requiring multinationals to report their tax bills on a country-by-country basis – with possible exemptions in the case of commercially-sensitive information.

Public access to tax information

Under the proposed measures, the income tax information of multinational firms with worldwide turnover of €750 million or more would be published in a common template in each tax jurisdiction in which the firm or its subsidiary was operating. This data would be available for free and made publicly accessible on the website of the firm.
The 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, the list of all its subsidiaries, a brief description of the nature of their activities and their respective geographical location;
- 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
whether undertakings, subsidiaries or branches benefit from a preferential tax treatment

  • Author: Carmen Ciobanu
  • Country: Europe
  • Language: English
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