More than five years ago, the European Commission adopted a proposal requiring multinational companies in the European Union with annual sales of more than 750 million euros to provide data. However, it has not yet been activated into law, and has been banned by Hungary, among other countries.
The proposal has been submitted Because complex tax rules and an environment characterized by tax secrets allowAdopting aggressive strategies for multinational corporations. He drew attention to previous regulations, which have also been converted into Hungarian law, requiring only individual country reporting to the tax authorities of multinational corporations. The tax advisory partner of the Niveus Consulting Group.
According to the proposal, multis should disclose, on a country-by-country basis, which EU member states they profit in, the member states in which they pay taxes, and in relation to which non-EU member states are tax havens.
Lagos Bagdee explained who said The companies involved mainly object to this because they fear the risks involved in disclosing confidential information and also fear the risk of double taxation. Germany opposed the adoption of the legislation from the beginning, taking into account the interests of large German companies. To this end, it brought together 11 other long-term EU member states to prevent the project from receiving the support of a qualified majority.However, a shift occurred earlier this year as Slovenia and Austria turned supportive of the regulation, while outside Germany, Hungary, Ireland, Luxembourg, Malta, Sweden, the Czech Republic and Cyprus continued to oppose the proposal. However, with the support of the majority, the proposal reached the European Council, which reached an interim political agreement with the European Parliament’s negotiating team. On this basis, member states would have eighteen months to convert the directive into national law.The provisionally approved text has been submitted for final approval to the European Council and the European Parliament, which will have to decide on aid within a few months. It can then be published in the Official Gazette of the Union, which must follow the internal jurisprudence of the member states.
