Italy’s Council of Ministers passed the draft decree introducing Public Country-by-Country Reporting (PCbCR) on 10 June, 2024. It amends Directive 2013/34/EU of 26 June 2013 (Accounting Directive), which pertains to the reporting of income tax information by certain undertakings and branches.
The draft intends to implement, adapt, coordinate, and link national legislation to the provisions of Directive 2021/2101/EU (CBCR – Country-by-Country reporting directive), which requires large multinationals to publicly communicate, with specific information, the income taxes paid in each EU country in which they are based.
The directive intends to enhance corporate transparency and public oversight of multinational tax strategies and operations.
It mandates mandatory reporting requirements for Multinational Enterprises (MNEs) with a consolidated turnover exceeding EUR 750 million for each of the last two consecutive financial years.
Penalties for noncompliance have been set ranging from EUR 10,000 to EUR 50,000.
The draft decree now awaits parliamentary review and is anticipated to take effect in the coming months. It will apply to financial years beginning on or after 22 June, 2024.
