European Commission proposes public tax transparency rules for multinationals

EU News 121/2016

Strasbourg, 12 April 2016

The Commission is today leading the way towards greater corporate tax transparency by introducing public reporting requirements for the largest companies operating in the EU.

Today's proposal builds on the Commission's work to tackle corporate tax avoidance in Europe, estimated to cost EU countries EUR 50-70 billion a year in lost tax revenues. Supplementing other proposals to introduce sharing of information between tax authorities, it would require multinationals operating in the EU with global revenues exceeding EUR 750 million a year to publish key information on where they make their profits and where they pay their tax in the EU on a country-by-country basis. The same rules would apply to non-European multinationals doing business in Europe. In addition, companies would have to publish an aggregate figure for total taxes paid outside the EU.

This proposal is a simple, proportionate way to increase large multinationals' accountability on tax matters without damaging their competitiveness. It will apply to thousands of large firms operating in the EU, without affecting small and medium-sized companies.

Source and additional information:
http://europa.eu/rapid/press-release_IP-16-1349_en.htm?locale=en

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