Large companies will publish income tax data
Major EU-based multinationals, as well as non-European Economic Area multinationals operating in the Union through a branch or subsidiary, will have to publicly disclose information on income tax paid.
This will be an income tax report and, in addition to data on tax paid, will also have to include other information related to taxes on a country-by-country basis. Such changes are provided for in the amendment of the Accounting Act, the National Court Register Act and the Act on Statutory Auditors, Audit Firms and Public Supervision, which implements the regulations of Directive (EU) 2021/2101 of the European Parliament and of the Council of 24 November 2021 amending Directive 2013/34/EU as regards disclosure of information on income tax by certain undertakings and branches (Official Journal of the EU L 429 of 01.12.2021, p. 1). A draft of these provisions has already been submitted to the Sejm (print no. 242).
Whom the obligations will cover
The new obligations are intended to cover large multinationals (ultimate parent companies of a group and stand-alone entities, with respectively consolidated revenues – for ultimate parent companies – and revenues – for stand-alone entities – exceeding €750 million in two consecutive years) based in the EU, as well as multinationals outside the European Economic Area doing business in the EU through a branch or subsidiary.
Today, this type of data is reported to the tax authorities. After the amendment, they will have to be made public.
In addition, income tax report data will have to be disclosed separately for all EEA countries in which the company operates, as well as for jurisdictions considered to be tax havens. For other tax jurisdictions, the information will be presented in aggregate form.
When the changes
Companies will have to prepare an income tax report for the first time for the financial year beginning after 21 June 2024. In addition, these reports will be verified by auditors as to whether the company has complied with its obligation to file an income tax report with the KRS. The auditors will carry out their verification when auditing the financial statements for the financial year beginning after 21 June 2025.
The draft can be found here: Rządowy projekt ustawy skierowany do Sejmu – Sejm Rzeczypospolitej Polskiej