Lower threshold proposed for Country by Country Reporting draft text
In a first draft report released in February 2017, the two Members of the European Parliaments in charge of this dossier proposed to lower the turnover threshold to €40 million to include even more organisations, even though the €750m threshold had been agreed at OECD level to ensure a global level playing field.
The Commission stated that because 90% of corporate revenues in the EU were covered by a €750m threshold, the objective of CbCR would, therefore, be reached. It would also avoid creating new red tape for the SMEs which would be caught by the €40m turnover limit.
The OECD and the BEPS recommendations were a great step forward in finding the right balance between increased corporate transparency and a global level playing field. For the attractiveness of the EU, it seems crucial to remain in line with the agreements made at global level.
The European Parliament will adopt the report in committee at the end of May, opening the dialogue with Member States at the Council for a final adoption by the end of 2017.