On 21 June 2023, France officially released Ordinance No. 2023-483, which mandates the public disclosure of CbC (Country-by-Country) reporting information. The ordinance was officially released in the French Official Journal.
As per the European Union regulations, companies operating across multiple EU countries and generating annual revenues exceeding EUR 750m will be obligated to disclose the specific amount of tax they pay in each member state. This requirement applies to both multinational corporations and their subsidiaries. Furthermore, it is mandated that this tax payment information must be made easily accessible to the public on the internet, utilizing a standardized template and in a format that can be processed by machines.
In order to promote usability and transparency, the data submitted by companies must be categorized into distinct items. These items encompass various aspects such as the nature of the company’s operations, the number of full-time employees, the pre-tax profit or loss amount, the accumulated and paid income tax figures, as well as the accumulated earnings.
If subsidiaries or branches fall below the revenue threshold but are found to exist solely for the purpose of circumventing the new reporting obligations, they will still be obligated to disclose their tax information. Certain provisions are in place to temporarily exempt multinational corporations from specific reporting requirements in order to safeguard commercially sensitive information.
It is important to note that the provisions outlined in the Ordinance are applicable to financial years commencing on or after 22 June 2024.