On 22 December 2022, the Spanish government published the legislation implementing the European Union (EU) Directive (2021/2201) on Public Country-by-Country (CbC) Reporting (CbCR).
According to the EU Public CbCR Directive, both EU-based multinationals (MNEs) and non-EU-based MNEs operating in the EU through a branch or subsidiary, each with a total consolidated turnover of more than EUR 750 million in those doing business in finance for the last two consecutive years must publicly disclose income taxes paid and other tax-related information such as a breakdown of profits, revenues and employees by country. However, Spain has opted to allow affected groups to defer disclosure of commercially sensitive information for up to five years, under certain conditions.
EU Member States have until 22 June 2023 to transpose the Directive into national law, and the first reporting year is the year beginning on or after 22 June 2024 at the latest. The rules will come into force in Spain on 22 June 2024.
