Austrian Public CbCR: What You Need to Know

A new era of tax transparency begins in Austria in 2025 with the introduction of public Country-by-Country Reporting (Public CbCR). The Austrian CbCR Publication Act (CBCR-VG), published in the Federal Law Gazette BGBI I 83/2024 on July 17, 2024, implements Directive (EU) 2021/2101, amending the EU Accounting Directive. The EU Implementing Regulation 2024/2952, published on December 2, 2024, sets the standardized template, electronic reporting format, and markup language required for compliance. This article outlines key aspects of the CBCR-VG and the steps businesses must take to ensure compliance, mitigate risks, and leverage transparency opportunities.

Public Nature of the Reporting: Key Considerations for Management

Public CbCR represents a fundamental shift in corporate tax transparency. Unlike traditional tax disclosures, these reports will be available to a broad audience, including tax authorities, investors, analysts, the media, and the general public. This increased visibility introduces both reputational risks and strategic opportunities. Companies must not only ensure accuracy and compliance but also proactively manage the potential impact of public perception.

Overview of CBCR-VG

The CBCR-VG mandates certain companies to publish an "income tax information report" to increase transparency and facilitate public scrutiny of multinational enterprises' tax practices. The regulation targets corporations and registered partnerships in Austria, as well as domestic branches of non-EU/EEA entities with similar legal structures. Effective from fiscal years beginning after June 21, 2024, with reporting required for calendar year entities in 2025, it applies to entities that have consolidated revenues over EUR 750 million in two consecutive years.

Austrian subsidiaries of non-EU/EEA parent companies are generally required to report if they are medium-sized or large, and branches must report if no EU/EEA parent or subsidiary covers them and if they exceed EUR 10 million in revenue for two consecutive years. However, the CBCR-VG provides exemptions from reporting under certain circumstances. Companies should evaluate their reporting obligations early to manage compliance effectively. For more detailed information, please refer to the previous newsletter.

Companies Affected in Austria

According to the preamble to the draft law, approximately 82 ultimate parent entities and standalone undertakings must submit a Public CbCR in Austria. Additionally, around 40 subsidiaries or branches will be affected, bringing the total to approximately 120 entities. Given the potential implications, businesses should take proactive steps to evaluate their obligations and anticipate public responses.

Latest Developments – What is new?

Language Requirements

Reports can be submitted in German or English. Initially, UPEs and standalone Austrian entities were required to report in German, but flexibility has been extended. Companies should carefully assess whether language choices impact clarity, external interpretation, and compliance risks.

Report Format & Submission

• Data must be country-specific.
• Aggregated data is allowed for non-EU jurisdictions unless on the EU's non-cooperative tax list.
• Reports must be filed as an XHTML document with iXBRL tagging.
• Third-country groups (i.e., not based in EU/EEA) can publish in any EU member state where they have a reportable entity.

The Implementing Regulation 2024/2952 defines:

• • Annex I: Standardized reporting template.
  • Annex II: XBRL standards for electronic data submission.
  • Annex III: Labeling and format requirements for readability and consistency.
  • Annex IV: Taxonomy elements specifying required disclosures.

The new reporting structure applies from January 1, 2025, meaning businesses must implement compliant reporting systems in the coming months.

EU List of Non-Cooperative Jurisdictions

Entities operating in jurisdictions on Annex I or II of the EU’s non-cooperative tax list must disclose separate data for each country. The latest list includes:

• • Annex I: American Samoa, Anguilla, Antigua and Barbuda, Fiji, Guam, Palau, Panama, Russia, Samoa, Trinidad and Tobago, U.S. Virgin Islands, Vanuatu.
  • Annex II: Armenia, Belize, British Virgin Islands, Costa Rica, Curaçao, Eswatini, Malaysia, Seychelles, Turkey, Vietnam.

If companies operate in these jurisdictions, they must ensure accurate data segmentation and public disclosure to avoid compliance risks and potential reputational scrutiny.

Next Steps for Companies

Data Collection & Submission

• Decide whether to use detailed CbCR (OECD) data or the Public CbCR format. For Public CbCR, in non-EU countries not on the EU's non-cooperative list, only aggregated figures are needed. Regular CbCR, however, requires detailed data without aggregation for all countries as well as additional details, such as a separate presentation of related and unrelated party revenues. Certain groups may see benefits in providing reporting consistently under both transparency standards (see below for further details).
• Ensure data accuracy and proper mapping to prevent inconsistencies.
• Evaluate reporting tools for compliance and XHTML/iXBRL conversion.

PwC Austria offers support in aligning OECD CbCR data with Public CbCR requirements and electronic disclosure in Austria.

Managing Public Disclosure Risks

• Assess how stakeholders, including investors, regulators, and the media, may interpret the disclosed data.
• Identify potential reputational risks and ensure that published reports provide accurate context.
• Develop a proactive communication strategy to address external inquiries and avoid misinterpretations.

Where to Publish the Report

• EU-based UPEs and standalone entities must report in their home country.
• Non-EU/EEA UPEs with multiple subsidiaries in the EU/EEA may select a jurisdiction within the EU/EEA for reporting, as a public CbCR must be disclosed in at least one EU/EEA jurisdiction.

PwC Austria provides guidance on:

• Compliance requirements and registry filings in different jurisdictions.
• Language options
• Applicable disclosure exemptions and the required notifications of these exemptions within the specified timeframe.
• Penalties for non-compliance, including late submission risks.
• Legal liability for responsible representatives.

Temporary Omission of Sensitive Information

• Justify omissions with clear documentation to avoid disclosure disadvantages.
• Annual review required to determine continued need for confidentiality.
• Risks include competitors gaining insights, customer/supplier leverage, and reputational concerns.

PwC Austria assists in assessing, documenting, and defending omission decisions.

Considerations for Additional Disclosures

In light of the optional presentation of the full (OECD) CbCR information, reporting groups may see benefits in using the same reporting framework under both CbCR regimes. In addition, providing context to the group’s tax information presented to the general public should also be considered, assessing potential benefits and risks.

Providing supplementary explanations can:

• Enhance transparency and trust with stakeholders.
• Improve ESG ratings (e.g., S&P Global Corporate Sustainability Assessment).
• Reduce misinterpretation risks by contextualizing reported figures.

However, additional disclosures may:

• Invite increased scrutiny from tax authorities and regulators.
• Increase compliance costs due to additional reporting efforts.

PwC Austria can help companies strategically assess the benefits and risks of additional disclosures and ensure alignment with overall transparency objectives.

Conclusion

With Public CbCR now embedded in Austrian law, companies must take immediate steps to ensure compliance and proactively manage public disclosure risks. The EU Implementing Regulation mandates XHTML and iXBRL for structured financial disclosures. Businesses should:

• Collect and validate required data.
• If the jurisdiction for publishing the Public CbCR is not mandated, identify the preferred jurisdiction for disclosure.
• Check the applicability of exemptions and the necessary steps to obtain an exemption.
• Assess potential omissions and additional disclosures for compliance and strategic benefits.
• Implement a communication strategy to address external interpretations.

PwC Austria offers expert guidance in navigating these challenges, helping companies not only meet compliance requirements but also use Public CbCR as a tool for managing public perception, building stakeholder trust, and strengthening corporate governance. Contact us for tailored support in aligning your reporting strategy with regulatory requirements.

Author: Florian Egner