The European Parliament formally adopted a directive for public country-by-country (CbC) reporting on November 11, 2021. This directive will require multinational entities (MNEs) with total consolidated revenue of at least EUR 750 million that operate in the EU to publish income tax information in each EU member state. These MNEs will also be required under the directive to publish income tax information in each country listed on the EU list of non-cooperative jurisdictions or the EU "grey list" for two consecutive years.

The public CbC reporting directive will enter into force 20 days after it is published in the Official Journal of the European Union. EU member states will then have 18 months to implement and transpose the directive into domestic law. Assuming the directive enters into force in December 2021, EU member states will have until June 2023 to implement the directive domestically, and the rules would apply from June 2024 (i.e., the rules would apply to financial years starting on or after June 2024). However, EU member states could also choose to apply the rules earlier.


The European Commission presented a proposal on public CbC reporting requirements for certain MNEs in 2016. However, until earlier this year, the proposal was deadlocked, in large part due to disagreements among EU member states on the legal basis of the proposal (generally whether it required a qualified majority or unanimous approval by the EU Council). After certain countries changed their position to support the proposal, the EU Council and the European Parliament approved mandates for their respective negotiating positions on the directive in March 2021. European Parliament Committees and the EU Council then approved a compromise text on the proposed reporting requirement in June 2021 and September 2021, respectively.


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Information is current to November 15, 2021. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500