The EU parliament approved the proposal to amend Directive 2013/34/EU on disclosing the financial information of multinationals for tax purpose, including branches outside the EU.
The proposal introduces a threshold that the global turnover equals to the amount of €750 million. Multinationals above the threshold have to publicly release their tax information, explaining the amount of tax due and the place to pay, irrespective of whether the tax is paid within the EU or not.
The information would include:
All these information is to be released online and offered free of charge to improve the tax transparency.
As regards confidential information, Member States have the discretion to exempt one or more items. However, such exemption is subject to strict limits and has to be renewed every year. Once the exemption is ceased, the company concerned must make the omitted data publicly available immediately, by which time the firm must publish its tax details retroactively “in the form of an arithmetic average” to cover that period when they did enjoy immunity from providing details.
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