On 11 May 2023, the lower house of the parliament (Bundestag) approves a bill to implement EU Directive, requiring publicly disclose CbC report for qualifying Multinational Enterprises (MNEs) operating in the EU.
The Public Country-by-Country Reporting (CbCR) Directive, formally known as Directive 2021/2101, amends the Accounting Directive (2013/34) and requires multinational enterprises (MNEs) based in the European Union, as well as non-EU MNEs operating in the EU through a branch or subsidiary, to publicly disclose specific income tax information if their total consolidated revenue exceeds EUR 750 million in each of the last two consecutive financial years.
By 22 June 2023, EU Member States are obligated to incorporate the directive into their respective domestic laws. The proposed implementing bill outlines penalties amounting to EUR 250,000 for any breaches of the disclosure obligations. However, it should be noted that the bill is currently awaiting approval from the Federal Council (Bundesrat) before it can be officially enacted.
