In principle, the Directive requires multinational corporate groups (whether their headquarters are inside or outside the EU) which are active in more than one EU Member State and which exceed an annual consolidated turnover of €750 million to disclose certain country-by-country income tax information on an annual basis.

The information that the multinational group will be required to disclose in its report on income tax includes:

• The name of the ultimate parent undertaking, reporting period, currency and a list of subsidiaries consolidated in the financial statements;
• A brief description of the nature of their activities;
• The number of employees in full-time equivalent;
• Its revenues;
• The amount of profit or loss before income tax;
• The amount of income tax accrued for the reporting period;
• The amount of income tax paid in the reporting period; and
• The amount of accumulated earnings at the end of the reporting period.

The report on income tax information should be made publicly available free of charge in one of the official EU languages within 12 months after the balance sheet date of the reporting period. The report should be published in a machine-readable electronic format on the website of the ultimate parent company or the standalone company.

The Directive entered into force on 21 December 2021, and EU Member States have 18 months to transpose it into national legislation, i.e. until 22 June 2023.

Unfortunately, no public information is currently available on the transposition into Czech legislation, but it is expected to be included in the Accounting Act. The transposition will also reveal the details regarding the potential obligations of Czech subsidiaries or branches.