Public Country-by-Country Reporting & Tax Transparency

The EU introduced the Public Country-by-Country Reporting (CbC Report, or CbCR) Directive in November 2021 by which a vast number of multinational enterprises (MNEs) in the member states are obliged to publicly display corporate income tax data.

Austria published a first draft of implementing this Directive into Austrian tax law in April 2024. While many of the MNEs affected by the Directive already underly the OECD CbC reporting obligation, only very few have publicly disclosed such information as part of their annual reporting (on a voluntary basis).

The new publication obligation brings challenges and opportunities in terms of data (quality), transparency and communication with stakeholders. However, there are also potential synergy effects with other current topics such as “Pillar II” or a company’s sustainability management, that are worth exploring.

In our more in-depth article, we provide an overview of these challenges and opportunities and give an insight into the existing and future tax reporting landscape consisting of the OECD, the EU, the Global Reporting Initiative (GRI) and more.

Authors of the linked article: Marianna Dozsa, Anna Kraus, Alexander Proier