The Commission welcomes today's political agreement by Member States on the automatic exchange of tax-related financial information of multinational companies, known as country-by-country reporting, subject to UK parliamentary scrutiny. The agreement was reached at a meeting of Economic and Financial Affairs ministers in Brussels, less than two months after the European Commission presented its ambitious proposal.
The new rules will apply to multinational companies which operate cross-border in the EU. Once implemented, all Member States will have the information they need to protect their tax bases and to effectively address companies that try to escape paying their fair share of taxes where they make their profits.
The new rules reflect the current global political and economic approach to corporate taxation and will add to the implementation of OECD guidelines on Base Erosion and Profit Shifting (BEPS). The rules also respond to calls from the European Parliament and other interested parties for further transparency on multinational groups. As part of a separate work stream, the Commission is currently finalising its impact assessment on public CbCR and will present a proposal in April.