The country-by-country reporting measures will require affected financial institutions to disclose on a consolidated basis annual payments made to governments, including profit before tax, taxes on profits, and subsidies received.
Earlier this year, the European Parliament and the Council of the EU also reached political agreement on similar reporting requirements for certain entities active in the extractive and logging industries, under the Accounting and Transparency Directives. The rules require certain companies active in the extractive industry and the logging of primary forests to disclose payments made to governments, including royalty and dividend payments, and also taxes on income, production or profits of companies. Taxpayers do not need to report payments that do not exceed EUR 100,000 in a financial year, or that do not result from extractive and/or logging operations.
According to a press release, unless significant negative effects are identified and the reporting requirements are deferred by the Commission, the country-by-country reporting requirements will apply from January 1, 2015.
For more information, contact your KPMG adviser.
Information is current to July 03, 2013. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500