The European Parliament adopts the Directive on public Country-by-Country Reporting which will require multinationals to publicly disclose the tax they pay in the EU and G20 leaders endorse the revised Statement of Agreement on the two-pillar solution to address the tax challenges arising from the digitalisation of the economy. All this and more in the international developments.

The European Parliament formally approved the Directive on public Country-by-Country Reporting (CbCR) on 11 November. The CbCR Directive requires certain multinational undertakings with revenue of more than €750 million to publicly disclose the amount of tax they pay.

Multinationals and their subsidiaries with annual revenues over €750 million – and which are active in more than one EU country – will now have to publish the amount of tax they pay in each member state. This information will also need to be made publicly available on the internet, using a common template and in a machine-readable format.

The Directive (Directive 2021/2101) will enter into force on 21 December 2021, and Member States will then have until 22 June 2023 to implement the Directive into domestic legislation. The rules will apply, at the latest, from the commencement date of the first financial year starting on or after 22 June 2024.