Position paper - Public Country-by-Country Reporting (pCbCR) Directive Implementing Regulation Consultation Response

The European Commission’s proposed common template and electronic reporting formats for public Country-by-Country Reporting (pCbCR) play an important role in streamlining compliance for multi-national enterprises (MNEs) and ensuring consistency in public reporting. However, further alignment with the OECD’s non-public CbCR requirements and refinements to minimise national divergence are necessary to reduce compliance burdens and enhance coherence across reporting obligations.

Key Recommendations

Provide further EU public CbCR interpretation support

• Include a qualifying narrative and disclaimer in public CbCR templates to specify that reported data covers corporate income taxes only, excluding other tax contributions that MNEs recur and remit
• Introduce a non-mandatory field for voluntary commentary to aid in data interpretation

Clarify public CbCR and non-public CbCR alignment

• Clarify which MNEs are required to use the common template and electronic reporting requirements, and what options exist for others, while allowing flexibility in reporting formats
• Clarify the options available non-EU ultimate parent entities (UPEs) and consider allowing them to use a ‘one number’ approach across public and non-public CbCR
• Consider the needs of non-EU headquartered companies who need to use public CbCR formats required under their HQ country’s legislation for sensitivity reasons

Maximise alignment with OECD templates

• Align markup language at the most globally harmonious level possible (ie allow MNEs to use XML to align with non-public CbCR)

Minimise member state divergence

• Remove or limit the ability of member states to introduce additional columns or national-specific requirements in reporting formats
• Clarify reporting obligations related to non-EU tax jurisdictions
• Specify which items need additional details under annex I section 4

Encourage consistent implementation and provide clear guidance

• Advocate for a harmonised implementation timeline across all member states, with clear guidance on early implementation by certain countries
• Propose a single filing deadline and a harmonised safeguard period across the EU
• Publish technical guidance for consistent application of public and non-public CbCR rules