Minister for Trade Promotion, Digital and Company Regulation, Robert Troy TD, today announced the launch of a public consultation to seek the views of interested parties on the implementation of Directive EU 2021/2101 on the disclosure of income tax information by certain undertakings and branches.
The Directive introduces for the first-time public country-by-country reporting of corporate tax information by multinational enterprises (MNE), regardless of whether they are headquartered in the EU or not, with a net turnover of more than €750m, and who are doing business in the EU, including through subsidiaries and branches, for each of the last two consecutive financial years.
Announcing the public consultation, Minister Troy said,
“I am seeking the views of stakeholders as Ireland prepares for the adoption of the country by country reporting Directive. For the first time, non-EU multinationals doing business in the EU through subsidiaries and branches will also have to comply with the same reporting obligations as EU multinationals. It is an important development to restore public trust in the fairness and transparency of our tax system and to ensure a level playing field between EU and third-country multinational enterprises.”
“With the introduction of public country-by-country reporting, Ireland along with the other 26 EU member states will become global leaders in the promotion of corporate transparency. This is good for business, good for employees and good for the general public. I therefore urge all interested parties, including not for profit organisations, consumers, and businesses to consider the objectives of the Directive and to share their views on how the Directive should be implemented in Ireland”
The consultation is seeking views on the two Member State’s options under the Directive and offers an opportunity to provide general comments, including on the mandatory provisions of the Directive in the Response Template provided.
The deadline for submissions is Friday 18 February 2022. The Directive, which was agreed and published in the Official Journal of the EU on 1 December 2021, enters into force on 21 December 2021 and must be transposed into Irish law by 22 June 2023.
Notes to Editors
A link to the public consultation can be found at Public Consultation on the transposition of Directive (EU) 2021/2101 as regards disclosure of income tax information by certain undertakings and branches
The deadline for submissions is Friday 18 February 2022
About Directive EU 2021/2101
Directive EU 2021/2101 introduces for the first-time public country-by-country reporting of corporate tax information by multinational enterprises (MNE) whether they are headquartered in the EU or not, with a base, subsidiary or a branch in the EU, and a net turnover of more than €750m, for each of the last two consecutive financial years.
The report will include disaggregated tax payment information for each Member State and for each tax jurisdiction listed in Annex I of the EU list of non-cooperative jurisdictions for tax purposes or listed in Annex II for two consecutive years, in which a company operates. Aggregated data will be reported for all other corporation tax paid outside the EU.
Public country-by-country reporting has already been introduced for the banking sector with Directive 2013/36/EU and the extractive and logging industry with Directive 2013/34/EU.
Directive 2021/2101 seeks to enhance corporate transparency and public scrutiny of corporate taxes paid by MNEs carrying out activities in the EU, to tackle tax avoidance and tax evasion, particularly in the field of corporate income tax and aggressive tax planning. While there are already Directives in place providing for the exchange of tax information, to date, the scope is limited to information sharing between tax authorities. This Directive broadens information sharing by making data publicly available relating to tax paid at the place where profits are made.