INTRODUCTION Contributed by: Paolo Ludovici, Marlinda Gianfrate, Luca Tortorella and Angelica Masciulli, Gatti Pavesi Bianchi Ludovici
The implementation date of the proposal is 1 January 2026. The European Parliament adopt - ed its non-binding report in April 2024. Within the European Council, where unanimity is required for the adoption of the proposal, techni - cal examination thereof is on-going, but several member states have concerns about the pos - sibility of losing the flexibility they currently have in applying the OECD’s Transfer Pricing Guide - lines, and this legislative proposal is not gather - ing sufficient support from member states. The majority of member states see no possibility of further progress on the basis of the current form of the Commission’s proposal. Neverthe - less, a few member states hold the view that technical discussions should continue in order to determine if there are any relevant procedural aspects related to the transfer pricing rules (see the December 2024 report of the Economic and Financial Affairs Council (ECOFIN) to the Euro - pean Council on tax issues). Public CbCR Directive The EU has long been at the forefront of advanc - ing corporate tax transparency. Member states have transposed into their domestic legisla - tion the Amending Directive to the Accounting Directive (2013/34) concerning the disclosure of income tax information by certain undertakings and branches (Directive 2021/2101), also known as the Public CbCR Directive. At the end of 2024, the European Commission published the implementing regulation providing the common template and electronic reporting formats for applying the public CbCR Directive. The Directive requires MNE groups to publish a report on income tax information, aiming to enhance transparency and allow public scrutiny of income tax data. This transparency enables debate on the contribution of MNEs in each EU
member state through the taxes they pay. The framework of Directive 2013/34 is mandatory for MNEs operating in the EU, provided they exceed a size threshold. The Public CbCR Directive expanded this scope to include branches estab - lished in a member state by companies based outside the EU. MNE groups with consolidated revenue exceeding EUR750 million, and stan - dalone undertakings with a taxable presence in at least two member states, must disclose CbCR data for operations within the EU, including in “non-cooperative jurisdictions”. The rules apply from the commencement of the first financial year starting on or after 22 June 2024. The report must include corporate and financial information, such as company activities, a list of subsidiaries consolidated in the financial state - ments, number of employees, revenue, profits or losses and key income tax data, including taxes accrued and paid. This information will be published in national company registers for accessibility. Companies must also publish this information on their websites. It is worth mentioning that outside Europe, a public CbCR regime has been implemented by Australia, applying to reporting periods starting 1 July 2024. Tax Certainty and the Transfer Pricing Framework: Global Statistics for MAPs and APAs On 15 November 2024, the OECD released its annual statistics on MAPs, including for the first time data on bilateral and multilateral APAs for 2023. These statistics monitor the implementa - tion of Action 14 of the G20/OECD BEPS Pro - ject, which aims to verify the effectiveness of international tax dispute resolution mechanisms. The data covers 120 jurisdictions, providing a nearly complete representation of MAP cases
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