European Parliament – Stricter tax rules for companies – Economy

In the future, large companies in the European Union will have to make public the number of taxes they pay in each state. The European Parliament on Thursday approved a law aimed at exposing models of corporate tax savings. “This should be clearly disclosed in large international companies where, in which country they generate profits and where, therefore, they are obliged to pay taxes,” said MEP Evelyn Regner (S&D, Austria), responsible of Parliament Negotiated. In June, after a five-year dispute, EU institutions agreed on new rules for what is known as “country-by-country reporting”. With parliamentary approval, the law has now been finalized at EU level. Member States must now implement it within 18 months. According to the regulation, multinational companies with a worldwide turnover of more than 750 million euros must not only give tax administrations but also the public an overview of their books. This applies to European and international companies based in the EU. In a country-specific report, they should publish, among other things, net sales, profit before taxes and income taxes actually paid.

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