News item | 02-02-2024 | 2:00 PM
From now on, large multinationals must annually disclose how much profit tax they pay worldwide. These are companies that are located in several countries and have a net turnover of more than 750 million euros. Mandatory disclosure of profit tax increases transparency about the taxes that multinationals pay worldwide. It should encourage these companies to do business in a fiscally responsible manner and to pay taxes in the countries where they have activities and make a profit.
Report
The obligation applies to multinationals based in the Netherlands. In addition, medium-sized and large subsidiaries established in the Netherlands and whose parent company is established outside the EU and have a worldwide turnover of more than EUR 750 million, must publish a report on the profit tax of the entire group of which they are part.
The profit tax must be included in a separate report, together with a description of the company’s activities and details of the number of employees, revenues and total profits. This information must be broken down for each Member State of the European Union and each country designated as a tax haven. The information for all other countries may be added together. The report is made public at the trade register.
European guide line
The Council of Ministers has approved the decision that implements a European Directive that is part of European policy to combat tax avoidance. The obligation applies from financial years starting on or after June 22, 2024. For most companies, this means that they must publish a report for the first time with the trade register for the 2025 financial year no later than December 31, 2026.