Bill implementing the EU public CbC reporting

Bill 8158 transposing EU Directive 2021/2101 amending Directive 2013/34/EU as regards disclosure of income tax information by certain undertakings and branches ("EU public country-by-country ("CbC") reporting directive") imposes on certain entities a yearly mandatory disclosure of certain income tax information. The disclosure obligation would be required for financial years starting on or after 22 June 2024.

Targeted entities include inter alia Luxembourg limited liability companies and transparent entities where all shareholders have limited liability, whether they are members of a consolidated group or not, exceeding a 750,000,000 EUR turnover threshold for two consecutive financial years. Luxembourg branches of entities established outside the EU will also be subject to the yearly disclosure obligation when exceeding an 8,800,000 EUR turnover threshold for two consecutive financial years. The disclosure obligation will not apply to Luxembourg entities and branches where the controlling entity has already made the required information public.

The disclosure relates to information concerning, among others, the ultimate parent entity, a list of every subsidiaries included in the ultimate parent entity's consolidated financial statements, a brief description of the activities carried out by the ultimate parent entity and the Luxembourg entity, the taxable profit or loss, the current tax expense recognised on taxable profits or losses of the financial year, the amount of income tax paid on a cash basis and non-distributed income at the end of the relevant financial year.

The information will be published on the Luxembourg company register's website ("RCS") or on the website of the Luxembourg entity or branch (if any). The publication will occur no later than 12 months after the end of the relevant financial year.

Sanctions in case of failure to disclose mandatory information include criminal fines against the management body of the ultimate parent entity (and/or of the Luxembourg entity and the subsidiaries) or, in the case of a Luxembourg branch, its permanent representative in Luxembourg.

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