EU Looks to Mandate Large Multinational Company Reporting by Country
Posted on 06/01/2021
Negotiators representing the European Parliament and EU governments agreed on a plan to mandate companies to disclose financial data including pretax profit or loss and income taxes paid from operations in each European Union member state. Companies that would be required to disclose would have total revenue exceeding 750 million euros in each of the last two consecutive financial years.
In addition, the selected companeis would need to report their income booked in countries that are tagged as tax havens by the European Union.
The plan still needs to have formal adoption before it becomes law. Once this occurs, EU member states will have 18 months to adopt it into national law.