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Council of the 
 
 

 European Union 
   
 
Brussels, 22 June 2017 
(OR. en) 
    10525/17 
 
Interinstitutional File: 
 
 
2016/0107 (COD) 
LIMITE 
 
DRS 43 

COMPET 508 
 
 
ECOFIN 560 
FISC 147 
CODEC 1100 
 
NOTE 
From: 
Presidency 
To: 
Delegations 
No. Cion doc.: 
7949/16 
Subject: 
Proposal for Directive of the European Parliament and the Council 
amending Directive 2013/34/EU as regards disclousure of income tax 
information by certain undertakings and branches (CBCR) 
State of play 
 
 
 
Delegations will find in the Annex a Presidency compromise text to take stock of the work 
undertaken with the help of delegations at Working Party level. 
 
Delegations are informed that changes compared to the Commission proposal (doc 7949/16) are in 
bold/underlined and strikethrough.  
The changes compared to doc. 15243/16/REV are also additionally marked in grey shaded. 
 
It is understood that all delegations have a general scrutiny reservation. 
FR, SE and UK entered a parliamentary scrutiny. 
 
 
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ANNEX 
2016/0107 (COD) 
Proposal for a 
 
DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 
 
amending Directive 2013/34/EU as regards disclosure of income tax information by certain 
undertakings and branches 
 
(Text with EEA relevance) 
 
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 
 
Having regard to the Treaty on the Functioning of the European Union, and in particular  
Article 50(1) thereof, 
 
Having regard to the proposal from the European Commission, 
After transmission of the draft legislative act to the national parliaments, 
Having regard to the opinion of the European Economic and Social Committee1, 
Acting in accordance with the ordinary legislative procedure, 
                                                 
1 
OJ C , , p. . 
 
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Whereas: 
(1)  In recent years, the challenge posed by corporate income tax avoidance has increased 
considerably and has become a major focus of concern within the Union and globally. The 
European Council in its conclusions of 18 December 2014 acknowledged the urgent need to 
advance efforts in the fight against tax avoidance both at global and Union level. The 
Commission in its communications entitled ‘Commission Work Programme 2016 - No time 
for business as usual’2 and ‘Commission Work Programme 2015 - A New Start’3 identified as 
a priority the need to move to a system whereby the country in which profits are generated is 
also the country of taxation. The Commission also identified as a priority the need to respond 
to our societies’ call for fairness and tax transparency. 
 
(2)  The European Parliament in its resolution of 16 December 2015 on bringing transparency, 
coordination and convergence to corporate tax policies in the Union4 acknowledged that 
increased transparency in the area of corporate taxation can improve tax collection, make the 
work of tax authorities more efficient and ensure increased public trust and confidence in tax 
systems and governments. 
In parallel to with the work undertaken by the Council to fight corporate income tax 
avoidance, it is necessary to enhance public scrutiny of corporate income taxes borne by 
multinational undertakings carrying out activities in the Union, as this is an essential 
element to further foster corporate responsibility to contribute to the welfare of our 
societies, to promote a better informed public debate and to regain the trust of citizens 
of the Union in the fairness of the national tax systems. Such public scrutiny can be 
achieved by means of a report on income tax information, irrespective of where the 
ultimate parent undertaking of the multinational group is established. 
 
                                                 
2 
COM(2015) 610 final of 27 October 2015. 
3  
COM(2014) 910 final of 16 December 2014. 
4  
2015/2010(INL) 
 
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(3)  Following the European Council conclusions of 22 May 2013, a review clause was introduced 
in Directive 2013/34/EU of the European Parliament and of the Council5 requiring the 
Commission to consider the possibility of introducing an obligation on large undertakings of 
additional industry sectors to produce, on an annual basis, a country-by-country reporting 
taking into account the developments in the Organisation for Economic Cooperation and 
Development (OECD) and the results of related European initiatives. 
 
(4)  Calling for a globally fair and modern international tax system in November 2015, the G20 
endorsed the OECD ‘Action Plan on Base Erosion and Profit Shifting’ (BEPS) which aimed 
at providing governments with clear international solutions to address the gaps and 
mismatches in existing rules which allow corporate profits to shift to locations of no or low 
taxation, where no real value creation may take place. In particular, BEPS Action 13 
introduces a country-by-country reporting by certain multinational undertakings to national 
tax authorities on a confidential basis. On 27 January 2016, the Commission adopted the 
‘Anti-Tax Avoidance Package’. One of the objectives of that package is to transpose into 
Union law, the BEPS Action 13 by amending Council Directive 2011/16/EU6
 
(5)  Enhanced public scrutiny of corporate income taxes borne by multinational undertakings 
carrying out activities in the Union is an essential element to further foster corporate 
responsibility, to contribute to the welfare through taxes, to promote fairer tax competition 
within the Union through a better informed public debate and to restore public trust in the 
fairness of the national tax systems. Such public scrutiny can be achieved by means of a 
report on income tax information, irrespective of where the ultimate parent undertaking of the 
multinational group is established. 
 
                                                 
5  
Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the 
annual financial statements, consolidated financial statements and related reports of certain 
types of undertakings, amending Directive 2006/43/EC of the European Parliament and of 
the Council and repealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 
29.6.2013, p. 19). 
6 
Council Directive 2011/16/EU of 15 February 2011 on administrative cooperation in the 
field of taxation and repealing Directive 77/799/EEC (OJ L 64, 11.3.2011, p. 1). 
 
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(6)  The public should be able to scrutinise all the activities of a group when the group has certain 
establishments within the Union. For groups which carry out activities within the Union only 
through subsidiary undertakings or branches, operating subsidiaries and branches should 
publish and make accessible the report of the ultimate parent undertaking to the extent that 
the requested information is available to the subsidiary or branch. If the requested 
information is not available the subsidiary or branch should explain in the report the 
reasons of this omission. However for reasons of proportionality and effectiveness, the 
obligation to publish and make accessible the report should be limited to medium-sized or 
large subsidiaries established in the Union, or branches of a comparable size opened in a 
Member State. The scope of Directive 2013/34/EU should therefore be extended accordingly 
to branches opened, and still operating, in a Member State by an undertaking which is 
established outside the Union and which has a legal form which is comparable to the types 
of undertakings listed in Annex I of Directive 2013/34/EU
 
(6a)  Multinational groups, and where relevant, certain non-affiliated undertakings, should 
provide the public with a report on income tax information when they exceed a certain 
size over a period of the last two consecutive financial years, depending on the 
consolidated revenue of the group or the revenue of the non-affiliated undertaking. 
Having regard to Article 2(12) of Directive 2013/34/EU, non-affiliated undertakings are 
intended to be stand-alone entities which are not part of a group. Given the wide array 
of accounting frameworks with which financial statements may comply, such revenue 
should be defined as the net turnover for undertakings falling within the scope of this 
Directive. governed by the law of a Member State or the revenue as defined in 
paragraph 2 of Article 48a for other undertakings. Article 43(2)(c) of Directive 
86/635/EEC and Article 66(2) of Directive 91/674/EEC provide definitions as to the 
determination of the net turnover of a credit institution or of an insurance undertaking, 
respectively. For other undertakings, the revenue should be assessed in accordance with 
the financial reporting framework on the basis of which these financial statements are 
prepared. 
 
 
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(6b)  At the same time it is stressed that, as concluded by the G20 and the OECD, country-by-
country reports will be helpful for high-level transfer pricing risk assessment purposes 
only. The information in the Country-by-Country Report on its own does not constitute 
conclusive evidence that transfer prices are or are not appropriate and that information 
should not be used as a substitute for a detailed transfer pricing analysis of individual 
transactions and prices based on a full functional analysis and comparability analysis. 
 
(7)  In order to avoid double reporting for the banking sector, ultimate parent undertakings and 
non-affiliated undertakings which are subject to Directive 2013/36/EU of the European 
Parliament and of the Council7 and which include in their report prepared in accordance with 
Article 89 of Directive 2013/36/EU all its activities and, where appropriate, all the activities 
of its affiliated undertakings included in the consolidated financial statements, including 
activities not subject to the provisions of Chapter 2 of Title 1 of Part Three of 
Regulation (EU) No 575/2013 of the European Parliament and of the Council8, should be 
exempted from the reporting requirements set out in this Directive. 
 
                                                 
7  
Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on 
access to the activity of credit institutions and the prudential supervision of credit 
institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 
2006/48/EC and 2006/49/EC (OJ L 176, 27.6.2013, p. 338) 
8  
Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 
2013 on prudential requirements for credit institutions and investment firms and amending 
Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1). 
 
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(8)  The report on income tax information should provide information concerning all the activities 
of an undertaking or of all the affiliated undertakings of a group controlled consolidated by 
an ultimate parent undertaking or, depending on the circumstances, concerning all the 
activities of a non-affiliated undertaking. The information should be based on the reporting 
specifications of BEPS’ Action 13 and limited to what is necessary to enable effective public 
scrutiny, in order to ensure that disclosure does not give rise to disproportionate risks or 
disadvantages for undertakings. For this reason, the list of information is exhaustive. The 
provisions of Chapter 10a of this Directive do not affect the provisions regarding annual 
financial statements and consolidated financial statements. The report should also include 
a brief description of the nature of the activities. Such description might be based on the 
categorisation provided for in table 2 of the Annex III of Chapter V of the OECD “Transfer 
Pricing Guidelines on Documentation”. 
 
(8a)  In order to avoid administrative burden, when preparing a report on income tax 
information in compliance with this Directive, undertakings should be entitled to 
prepare the information on the basis of the reporting specifications laid down in Annex 
III, Section III, parts B and C of Council Directive 2011/16/EU as amended. For this 
reason, the report should specify the reporting framework used. The report should might 
in addition include an overall narrative providing explanations in case of material 
discrepancies at group level between the amounts of taxes accrued and the amounts of taxes 
paid, taking into account corresponding amounts concerning previous financial years. 
 
(9)  In order to ensure a level of detail that enables citizens to better assess the contribution of 
multinational undertakings to welfare in each Member State, the information should be 
broken down by Member State. Moreover, information concerning the operations of 
multinational enterprises should also be shown with a high level of detail as regards certain 
tax jurisdictions which pose particular challenges. For all other third country operations, the 
information should be given in an aggregate number. 
 
 
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(10)  In order to strengthen responsibility vis-á-vis third parties and to ensure appropriate 
governance, the members of the administrative, management and supervisory bodies of the 
ultimate parent undertaking or non-affiliated undertakings which is are established within 
the Union and which has have the obligation to draw up, publish and make accessible the 
report on income tax information, should be collectively responsible for ensuring the 
compliance with these reporting obligations. Given that members of the administrative, 
management and supervisory bodies of the subsidiaries which are established within the 
Union and which are controlled by an ultimate parent undertaking established outside the 
Union or the person(s) in charge of carrying out the disclosures formalities for the branch may 
have limited knowledge of the content of the report on income tax information prepared by 
the ultimate parent undertaking or may have limited ability to obtain such information or 
report from their ultimate parent undertaking, their responsibility to publish and make 
accessible the report on income tax information should be limited. In case this information 
or report is not provided, the subsidiary undertakings should publish and make 
accessible a statement as to why the report on income tax information could not be 
published and made accessible. 
 
(11)  To ensure public awareness on the compliance of the reporting obligations by the 
relevant undertakings, that cases of non-compliance are disclosed to the public, statutory 
auditor(s) or audit firm(s) should check state whether the report on income tax information 
has been submitted and presented published, or not, in accordance with the requirements of 
this Directive and made accessible on the relevant undertaking’s website or on the website of 
an affiliated undertaking, or on the website of the register, within the time limits 
established by this Directive. A statutory auditor or audit firm should fulfil the 
requirements set out in Article 48f of this Directive to the extent of the information 
provided by the undertaking governed by the law of a Member State and to the extent of 
the information being readily available to the statutory auditor or audit firm. 
 
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(12)  This Directive aims to enhance transparency and public scrutiny on corporate income tax by 
adapting the existing legal framework concerning the obligations imposed on companies and 
firms in respect of the publication of reports, for the protection of the interests of members 
and others, within the meaning of Article 50(2)(g) TFEU. As the Court of Justice held, in 
particular, in Case C-97/96 Verband deutscher Daihatsu-Händler9, Article 50(2)(g) TFEU 
refers to the need to protect the interests of "others" generally, without distinguishing or 
excluding any categories falling within the ambit of that term. Moreover, the objective of 
attaining freedom of establishment, which is assigned in very broad terms to the institutions 
by Article 50(1) TFEU, cannot be circumscribed by the provisions of Article 50(2) TFEU. 
Given that this Directive does not concern the harmonisation of taxes but only obligations to 
publish reports on income tax information, Article 50(1) TFEU constitutes the appropriate 
legal basis. 
 
(12a) To ensure the full functioning of the internal market and a level playing field between 
the European Union and third-country multinational enterprises, the Commission 
should consider issuing recommendations on how to ensure that global dis-aggregation 
may be achieved particularly in international fora. 
                                                 
9  
Judgement of the Court of Justice of 4 December 1997, C-97/96 Verband deutscher 
Daihatsu-Händler
 ECLI:EU:C:1997:581 
 
 
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(13)  In order to determine certain tax jurisdictions for which a high level of detail should be 
shown, the power to adopt acts in accordance with Article 290 TFEU should be delegated to 
the Commission in respect of drawing up a common Union list of these tax jurisdictions. This 
list should be drawn up on the basis of certain criteria, identified on the basis of Annex 1 of 
the Communication from the Commission to the European Parliament and Council on an 
External Strategy for Effective Taxation (COM(2016) 24 final). It is of particular importance 
that the Commission carry out appropriate consultations during its preparatory work, 
including at expert level, and that those consultations be conducted in accordance with the 
principles laid down in the Interinstitutional Agreement on Better Law-Making as approved 
by the European Parliament, the Council and the Commission and pending formal signature. 
In particular, to ensure equal participation in the preparation of delegated acts, the European 
Parliament and the Council receive all documents at the same time as Member States' experts, 
and their experts systematically have access to meetings of Commission expert groups dealing 
with the preparation of delegated acts. 
 
(14)  Since the objective of this Directive cannot be sufficiently achieved by the Member States but 
can rather, by reason of its effect, be better achieved at Union level, the Union may adopt 
measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty 
on European Union. In accordance with the principle of proportionality as set out in that 
Article, this Directive does not go beyond what is necessary in order to achieve that objective. 
 
(15)  This Directive respects the fundamental rights and observes the principles recognised in 
particular by the Charter of Fundamental Rights of the European Union. 
 
(16)  In accordance with the Joint Political Declaration of 28 September 2011 of Member States 
and the Commission on explanatory documents10, Member States have undertaken to 
accompany, in justified cases, the notification of their transposition measures with one or 
more documents explaining the relationship between the components of a directive and the 
corresponding parts of national transposition instruments. With regard to this Directive, the 
legislator considers the transmission of such documents to be justified. 
                                                 
10 OJ C 369, 17.12.2011, p. 14. 
 
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(17)  Directive 2013/34/EU should therefore be amended accordingly, 
 
HAVE ADOPTED THIS DIRECTIVE: 
 
Article 1 
Amendments to Directive 2013/34/EU 
 
Directive 2013/34/EU is amended as follows: 
 
(1)  in Article 1, the following paragraph 1a is inserted: 
 
‘1a.  The coordination measures prescribed by Articles 2, 48a to 48eg and 51 shall also apply 
to the laws, regulations and administrative provisions of the Member States relating to 
branches opened and still operating in a Member State by an undertaking which is not 
governed by the law of a Member State but which is of a legal form comparable with 
the types of undertakings listed in Annex I.’ Article 2 shall apply to these branches to 
the extent that Articles 48a to 48e and 51 are applicable to such branches’
 
(2)  the following Chapter 10a is inserted: 
 
‘Chapter 10a 
Report on Income tax information 
 
Article 48a 
Definitions relating to reporting on income tax information 
 
1. 
For the purposes of this Chapter, the following definitions shall apply: 
 
(1)  ‘ultimate  parent  undertaking’  means  an  undertaking  which  draws  up  the  consolidated 
financial statements of the largest body of undertakings; 
 
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(2)  ‘consolidated financial statements’ means the financial statements prepared by a parent 
undertaking of a group in which the assets, liabilities, equity, income and expenses are 
presented as those of a single economic entity; 
 
(3)  ‘tax  jurisdiction’  means  a  State  as  well  as  a  non-State  jurisdiction  which  has  fiscal 
autonomy in respect of corporate income tax. 
 
2. 
For the purposes of Article 48b, the following definition shall apply: 
‘revenue’has the same meaning as:  
 
(1)  the ‘net turnover’, for undertakings governed by the law of a Member State, and 
 
(2)  the ‘revenue’ as defined by or within the meaning of the financial reporting 
framework on the basis of which financial statements are prepared, for other 
undertakings. 
 
Article 48b 
Undertakings and branches required to report on income tax information 
 
1. 
Member States shall require ultimate parent undertakings governed by their national laws 
which on their balance sheet date exceeded for each of the last two consecutive financial 
years a total consolidated revenue of EUR 750 000 000 as reflected in their consolidated 
financial statements and having a consolidated net turnover exceeding EUR 750 000 000 as 
well as undertakings governed by their national laws that are not affiliated undertakings and 
having a net turnover exceeding EUR 750 000 000 to draw up, and publish and make 
accessible a report on income tax information as regards the later of the last two 
consecutive financial years. on an annual basis. 
 
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Member States shall require undertakings governed by their national laws that are not 
affiliated undertakings and which on their balance sheet date exceeded for each of the 
last two consecutive financial years a total revenue of EUR 750 000  000 as reflected in 
their annual financial statements to draw up, publish and make accessible a report on 
income tax information as regards the later of the last two consecutive financial years. 
 
The report on income tax information shall be made accessible to the public on the website of 
the undertaking on the date of its publication. 
 
1a.  Member States shall not apply the rules set out in paragraph 1 to non-affiliated 
undertakings, ultimate parent undertakings and their affiliated undertakings where 
such undertakings, including their branches, operate are established only within the 
territory of one single Member State and in no other tax jurisdiction. 
 
2. 
Member States shall not apply the rules set out in paragraph 1 of this Article to non-affiliated 
undertakings and ultimate parent undertakings where such undertakings or their affiliated 
undertakings disclose a report in accordance with are subject to Article 89 of Directive 
2013/36/EU of the European Parliament and of the Council and encompass, in a country-by-
country that report, information on all their activities and all the activities of all the 
affiliated undertakings included in the consolidated financial statement of those ultimate 
parent undertakings. 
 
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3. 
Member States shall require the medium-sized and large subsidiary undertakings referred to 
in Article 3(3) and (4) that which are governed by their national laws and controlled by an 
ultimate parent undertaking which on its balance sheet date exceeded for each of the last 
two consecutive financial years a total consolidated revenue of EUR 750 000 000 as 
reflected in its consolidated financial statements has a consolidated net turnover exceeding 
EUR 750 000 000 and which is not governed by the law of a Member State, to publish and 
make accessible the a report on income tax information of that ultimate parent undertaking 
on an annual basis as regards the later of the last two consecutive financial years, to the 
extent that the this information or report is available to the subsidiary undertaking. 
When the this information or report is not available, the subsidiary undertaking shall 
request its ultimate parent undertaking not governed by the law of a Member State to 
provide it with all information required to enable it to meet its obligation. 
 
In case the this information or report is not provided, the subsidiary undertakings shall 
publish and make accessible a statement the report shall contain an explanation as to 
why this is the case the report on income tax information could not be published and 
made accessible. If such subsidiary undertaking exceeds the threshold set out in 
paragraph 1, it shall publish its own report on income tax information as provided for 
under paragraph 1 and 1a. 
The report on income tax information shall be made accessible to the public on the date of its 
publication on the website of the subsidiary undertaking or on the website of an affiliated 
undertaking. 
 
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4. 
Member States shall require branches which are opened in their territories and still operated 
by an undertaking which is not governed by the law of a Member State to publish and make 
accessible on an annual basis the report on income tax information of the ultimate parent 
undertaking or the non-affiliated undertaking referred to in point (a) of this paragraph 5 of 
this Article as regards the later of the last two consecutive financial years, to the extent 
that the this information or report is available to the person(s) designated to carry out 
the disclosure formalilities referred to in Article 48e(2). When the this information or 
report is not available, such person(s) shall request the ultimate parent undertaking not 
governed by the law of a Member State or the non-affiliated undertaking referred to in 
point (a) of this paragraph to provide all information required to meet their obligations. 
In case the this information or report is not provided, the branches shall publish and 
make accessible a statement as to why the report on income tax information could not be 
published and made accessible report shall contain an explanation as to why this is the 
case.  
 
The report on income tax information shall be made accessible to the public on the date of its 
publication on the website of the branch or on the website of an affiliated undertaking. 
Member States shall not apply the first subparagraph of this paragraph only to branches 
which have net turnover did not exceeding at least for each of the last two consecutive 
financial years the net turnover threshold defined by the law of each Member State pursuant 
to Article 3(2). 
5. 
Member States shall apply the rules set out in this paragraph 4 only to a branch only where 
the following criteria are met: 
 
(a)  the undertaking that which opened and still operates the branch is either an affiliated 
undertaking of a group which is controlled by an whose ultimate parent undertaking is 
not governed by the law of a Member State and which on its balance sheet date 
exceeded for each of the last two consecutive financial years a total consolidated 
revenue of EUR 750 000 000 as reflected in its consolidated financial statements has 
a consolidated net turnover exceeding or an undertaking that is not an affiliated 
undertaking and which has a net turnover exceeding on its balance sheet date 
exceeded for each of the last two consecutive financial years a total revenue of 
EUR 750 000 000 as reflected in its financial statementsand 
 
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(b)  the ultimate parent undertaking referred to in point (a) does not have a medium-sized or 
large subsidiary undertaking as referred to in paragraph 3. 
 
6. 
Member States shall not apply the rules set out in paragraphs 3 and 4 of this Article where a 
report on income tax information drawn up in accordance with consistently with Article 48c 
and: 
 
(a)  is made accessible
(i) 
to the public on the website of the ultimate parent undertaking not governed by 
the law of a Member State or of the non-affiliated undertaking not governed 
by the law of a Member State
(ii)  in at least one of the official languages of the Union; 
(iii)  within a reasonable period of time, which shall not exceed 12 months after the 
balance sheet date of the financial year for which the report is drawn up; and 
 
(b)  where the report identifies the name and the registered office of the a single subsidiary 
undertaking or the name and the address of the a single branch governed by the law of 
a Member State which has published the a report in accordance with Article 48d(1). 
 
7. 
Member States shall may require subsidiaries and or branches not subject to the provisions of 
paragraphs 3 and 4 to publish and make accessible the report on income tax information 
where such subsidiaries or branches have been established for the purpose of avoiding the 
reporting requirements set out in this Chapter. 
 
Article 48c 
Content of the report on income tax information 
 
1. 
The report on income tax information shall include information relating to all the activities of 
the non-affiliated undertaking and or the ultimate parent undertaking, including activities 
those of all affiliated undertakings consolidated in the financial statement in respect of the 
relevant financial year. 
 
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2. 
The information referred to in paragraph 1 shall be as follows comprise the following: 
(-a)  the name of the ultimate parent undertaking or the non-affiliated undertaking, 
financial year concerned and the currency used; 
(a)  a brief description of the nature of the activities; 
(b)  the number of employees which is the average number of employees during the 
financial year
(c)  the revenues which are: amount of the net turnover, which includes the turnover made 
with related parties;  
(i) 
the sum of the net turnover, other operating income, income from 
participating interests, excluding dividends received from affiliated 
undertakings, income from other investments and loans forming part of the 
fixed assets, other interest receivable and similar income as listed in Annexes 
V and VI of this Directive, or 
(ii)  the income as defined by or within the meaning of the financial reporting 
framework on the basis of which financial statements are prepared excluding 
value adjustments and dividends received from  affiliated undertakings; 
 
(d)  the amount of profit or loss before income tax; 
(e)  the amount of income tax accrued in the (current year), which is the current tax expense 
recognised on taxable profits or losses of the financial year by undertakings and 
branches resident for tax purposes in the relevant tax jurisdiction; 
(f) 
the amount of income tax paid on cash basis which is the amount of income tax paid 
during the relevant financial year by undertakings and branches resident for tax 
purposes in the relevant tax jurisdiction; and 
(g)  the amount of accumulated earnings. 
 
For the purposes of point (c) of the first subparagraph the revenues shall include 
transactions with related parties. 
 
For the purposes of point (e) of the first subparagraph the current tax expense shall relate only 
to the activities of an undertaking in the current financial year and shall not include deferred 
taxes or provisions for uncertain tax liabilities. 
 
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For the purposes of point (f) of the first subparagraph taxes paid shall include 
witholding taxes paid by other undertakings with respect to payments to undertakings 
and branches within a group. 
 
For the purposes of point (g) of the first subparagraph the accumulated earnings shall 
mean the sum of the profit brought forward which was not decided for distribution to 
members as of the end of the relevant financial year and the profit for that financial 
year which was not distributed. With regard to branches, accumulated earnings shall be 
reported by the undertaking which opened a branch. 
 
2a.  Member States shall permit the information listed in paragraph 2 to correspond to the 
reporting specifications referred to in Annex III, Section III, Parts B and C of Directive 
2011/16/EU.  
 
3. 
The report shall specify whether it was prepared in accordance with paragraph 2 or 2a. 
(moved to paragraph 8) 
The report shall present the information referred to in paragraph 2 or 2a separately for each 
Member State. Where a Member State comprises several tax jurisdictions, the information 
shall be combined at Member State level. 
 
The report shall also present the information referred to in paragraph 2 or 2a of this Article 
separately for each tax jurisdiction which, at the end of the previous financial year, is listed in 
the common EU nion list of non-cooperative jurisdictions for tax purposes11 certain tax 
jurisdictions drawn up pursuant to Article 48g, unless the report explicitly confirms, subject to 
the responsibility referred to in Article 48e below, that the affiliated undertakings of a group 
governed by the laws of such tax jurisdiction do not engage directly in transactions with any 
affiliated undertaking of the same group governed by the laws of any Member State. 
                                                 
11  
List adopted by the Council on [lawyer-linguists: please add the reference]. 
 
The precise language of this footnote shall be adapted when the list is adopted by the 
Council. 

 
List as referred to in the Conclusions of the Council of the European Union of 25 May 2016 
and 8 November 2016. 

 
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The report shall present the information referred to in paragraph 2 or 2a on an aggregated 
basis for other tax jurisdictions. 
 
The information shall be attributed to each relevant tax jurisdiction on the basis of the legal 
presence, the existence of a fixed place of business or of a permanent business activity which, 
arising from the activities of the group or non-affiliated undertaking, can give rise to 
income tax liability in that tax jurisdiction. 
Where the activities of several affiliated undertakings can give rise to a tax liability within a 
single tax jurisdiction, the information attributed to that tax jurisdiction shall represent the 
sum of the information relating to such activities of each affiliated undertaking and their 
branches in that tax jurisdiction. 
Information on any particular activity shall not be attributed simultaneously to more than one 
tax jurisdiction. 
 
3a.  Member States may allow certain information required to be disclosed by paragraphs 2 
and 3 of this Article to be omitted when its nature is such that it would be seriously 
prejudicial to the commercial position of the undertakings to which it relates, including 
when only a single affiliated undertaking operates in a tax jurisdiction which is not listed 
in the EU list of non-cooperative jurisdictions for tax purposes.  
 
Any such omission shall be disclosed in the report subject to prior administrative or 
judicial authorisation for a period of one year, which may be renewed, and disclosed in 
the report. The report shall include a detailed account of the basis for any exemption 
granted under this paragraph. 
 
4. 
The report shall may include, where applicable at group level, an overall narrative providing 
explanations on material discrepancies between the amounts disclosed pursuant to points (e) 
and (f) of paragraph 2, if any, taking into account if appropriate corresponding amounts 
concerning previous financial years. 
 
5. 
The report on income tax information shall be published and made accessible on the website 
in at least one of the official languages of the Union. 
 
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6. 
The currency used in the report on income tax information shall be the currency in which the 
consolidated financial statements of the ultimate parent undertaking or the annual 
financial statements of the non-affiliated undertaking are presented. Member States shall 
not require this report to be published in a different currency than the currency used in the 
financial statements. 
 
However, in the case mentioned in the second subparagraph of Article 48b(3), the 
subsidiary undertaking shall publish the report in the currency in which it publishes its 
annual financial statements.  
 
7. 
Where Member States have not adopted the euro, the threshold referred to in Article 48b(1) 
shall may be converted into the national currencyby Such conversion must applying the 
exchange rate as at [Publications Office- set the date = the date of the entry in force of this 
Directive] published in the Official Journal of the European Union and by may increase 
increasing or decrease the thresholds decreasing it by not more than 5 % in order to produce 
a round sum in the national currencies. 
 
The thresholds referred to in Article 48b(3) and (4) shall be converted to an equivalent 
amount in the national currency of any relevant third countries by applying the exchange rate 
as at [Publications Office - set the date = the date of the entry in force of this Directive]
rounded off to the nearest thousand. 
 
8. 
The report shall specify whether it was prepared in accordance with paragraph 2 or 2a 
of this Article. 
 
(moved from paragraph 3) 
 
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Article 48d 
Publication and Accessibility 
 
1. 
The report on income tax information or the statement mentioned in Article 48b shall be 
published within 12 months after the balance sheet date of the financial year for which 
the report is drawn up as laid down by the laws of each Member State in accordance with 
Chapter 2 of Directive 2009/101/EC, together with documents referred to in Article 30(1) of 
this Directive and where relevant, with the accounting documents referred to in in 
accordance with Article 9 of Council Directive 89/666/EEC. 
 
1a.  The report or the statement published in accordance with paragraph 1 shall be made 
accessible to the public within 12 months after the balance sheet date of the financial 
year for which the report is drawn up: 
(a)  on the website of the undertaking when Article 48b(1) applies, or 
(b)  on the website of the subsidiary undertaking or on the website of an affiliated 
undertaking when Article 48b(3) applies, or 
(c)  on the website of the branch or on the website of the undertaking which opened the 
branch or on the website of an affiliated undertaking when Article 48b(4) applies. 
 
1b.  Member States may exempt undertakings to apply the rules set out in paragraph 1a of 
this Article where the report published in accordance with paragraph 1 is 
simultaneously made accessible to the public on the website of the register referred to in 
Article 3(1) of Directive 2009/101/EC, free of charge to any third party located within 
the Union. The website of the undertakings and branches as referred to in paragraph 1a 
shall contain information on the exemption and the reference to the website of the 
relevant register. The report on the website of the register must be accessible to any 
third parties located within the Union and free of charge. 
 
2. 
The report referred to in Article 48b(1), (3), (4) and (6) shall remain accessible on the website 
for a minimum of five consecutive years. 
 
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Article 48e 
Responsibility for drawing up, publishing and making accessible the report on income tax 
information 
 
1. 
Member States shall ensure that the members of the administrative, management and 
supervisory bodies of the ultimate parent undertaking or the non-affiliated undertakings 
referred to in Article 48b(1), or the subsidiary undertaking exceeding for each of the last 
two consecutive financial years EUR 750 000 000 of total consolidated revenue as 
referred to in Article 48b(3), acting within the competences assigned to them under national 
law, have collective responsibility for ensuring that the report on income tax information is 
drawn up, published and made accessible in accordance with Articles 48b, 48c and 48d. 
 
2. 
Member States shall ensure that the members of the administrative, management and 
supervisory bodies of the subsidiary undertakings referred to in Article 48b(3) of this 
Directive and the person(s) designated to carry out the disclosure formalities provided for in 
Article 13 of Directive 89/666/EEC for the branch referred to in Article 48b(4) of this 
Directive, acting within the competences assigned to them by national law, have collective 
responsibility for ensuring that, to the best of their knowledge and ability, the report on 
income tax information is drawn up consistently with Article 48cis published and made 
accessible in accordance with Articles 48b, 48c and 48d. 
 
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Article 48f 
Independent check Statement by statutory auditor 
 
Member States shall ensure that, where the financial statements of an affiliated undertaking 
governed by the law of a Member State referred to in Article 48b(1), (3) and (6)(b) are 
required to be audited by one or more statutory auditor(s) or audit firm(s) pursuant to  
Article 34(1), the statutory auditor(s) or audit firm(s) also check state(s) in the next audit report 
after publication or, if applicable after the expiration of the time limit for publication whether
as of the date of the audit report, the a report on income tax information has been provided and 
made accessible in accordance with referred to in Articles 48b, 48c and 48d has been published
The statutory auditor(s) or audit firm(s) shall indicate in the audit report if the report on income tax 
information has not been provided or and made accessible or not, in accordance with those Articles 
48b and 48d
 
Article 48g 
Common Union list of certain tax jurisdictions 
 
The Commission shall be empowered to adopt delegated acts in accordance with Article 49 in 
relation to drawing up a common Union list of certain tax jurisdictions. That list shall be based on 
the assessment of the tax jurisdictions, which do not comply with the following criteria: 
 
(1)  Transparency and exchange of information, including information exchange on request 
and Automatic Exchange of Information of financial account information  
(2)  Fair tax competition; 
(3)  Standards set up by the G20 and/or the OECD.  
(4)  Other relevant standards, including international standards set up by the Financial 
Action Task Force. 
 
The Commission shall regularly review the list and, where appropriate, amend it to take 
account of new circumstances. 
 
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Article 48h 
Commencement date for reporting on income tax information 
 
Member States shall ensure that laws, regulations and administrative provisions transposing  
Articles 48a to 48f apply, at the latest, from the commencement date of the first financial year 
starting on or after [Publications Office- set the date = one year after the transposition deadline]
 
Article 48i 
Report 
 
The Commission shall report on the compliance with and the impact of the reporting obligations set 
out in Articles 48a to 48f. The report shall include an evaluation of whether the report on income 
tax information delivers appropriate and proportionate results, taking into account the need to 
ensure a sufficient level of transparency and the need for a competitive environment for 
undertakings. 
 
The report shall be submitted to the European Parliament and to the Council by [Publications 
Office- set the date = five years after the transposition date of this Directive].’ 
 
(3)  Article 49 is amended as follows: 
 
(a)  Paragraphs 2 and 3 are replaced by the following 
‘2.  The power to adopt delegated acts referred to in Article 1(2), Article 3(13), and 
Article 46(2) and Article 48g shall be conferred on the Commission for an 
indeterminate period of time from the date referred to in Article 54. 
 
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3. 
The delegation of power referred to in Article 1(2), Article 3(13) , and Article 
46(2) and Article 48g may be revoked at any time by the European Parliament or 
by the Council. A decision to revoke shall put an end to the delegation of the 
power specified in that decision. It shall take effect the day following the 
publication of the decision in the Official Journal of the European Union or at a 
later date specified therein. It shall not affect the validity of any delegated acts 
already in force.’ 
(b)  The following paragraph 3a is inserted: 
‘3a.  Before adopting a delegated act, the Commission shall consult experts designated 
by each Member State in accordance with the principles laid down in the 
Interinstitutional Agreement on Better Law-Making of 13 April 2016 12[date].’ 
 
(c)  Paragraph 5 is replaced by the following: 
‘5.  A delegated act adopted pursuant to Article 1(2), Article 3(13) , and Article 46(2) 
and Article 48g shall enter into force only if no objection has been expressed 
either by the European Parliament or by the Council within a period of two 
months of notification of that act to the European Parliament and the Council or 
if, before the expiry of that period, the European Parliament and the Council have 
both informed the Commission that they will not object. That period shall be 
extended by two months at the initiative of the European Parliament or of the 
Council.’ 
                                                 
12  
OJ L 123, p. 1. 
 
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Article 2 
Transposition 
 
1. 
Member States shall bring into force the laws, regulations and administrative provisions 
necessary to comply with this Directive by [Publications Office - set the date = one two years 
after entry into force] at the latest. They shall forthwith communicate to the Commission the 
text of those provisions. 
 
When Member States adopt those provisions, they shall contain a reference to this Directive 
or be accompanied by such a reference on the occasion of their official publication. Member 
States shall determine how such reference is to be made. 
 
2. 
Member States shall communicate to the Commission the text of the main provisions of 
national law which they adopt in the field covered by this Directive. 
 
Article 3 
Entry into force 
 
This Directive shall enter into force on the twentieth day following that of its publication in the 
Official Journal of the European Union
 
Article 4 
Addressees 
 
This Directive is addressed to the Member States. 
 
Done at Strasbourg, 
 
For the European Parliament 
For the Council 
The President 
The President 
 
 
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Document Outline