On 27 August 2026, KPMG Czech Republic alerted multinational enterprises to the imminent application of Public Country-by-Country Reporting (Public CbCR) obligations under EU Directive 2021/2101, transposed into Czech law effective for financial years starting on or after 22 June 2024. Unlike the traditional CbCR filed confidentially with tax authorities (under BEPS Action 13), Public CbCR requires large multinational groups (consolidated revenue ≥ EUR 750 million) and large standalone undertakings to publish a report on income tax information for each jurisdiction where they operate. The first reports are due within 12 months of the financial year-end, meaning many groups face initial publication deadlines in 2026. The report must include revenues, profit before tax, income tax accrued and paid, stated capital, accumulated earnings, number of employees, and tangible assets per jurisdiction. Non-compliance attracts penalties up to 2% of consolidated turnover. This regime significantly increases tax transparency and reputational risk, requiring coordination between tax, legal, and communications functions.
Key Takeaways
- Broad Scope Beyond BEPS CbCR: Public CbCR applies to both multinational groups and large standalone entities, with public disclosure obligations exceeding the confidential filing requirements of traditional CbCR.
- First Reports Due in 2026: Groups with financial years ending 31 December 2024 must publish by 31 December 2025; those ending 31 March 2025 must publish by 31 March 2026 – immediate action is required.
- Data Consistency Critical: Public CbCR data must align with financial statements and confidential CbCR filings; discrepancies may trigger tax audits and public scrutiny from NGOs and media.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement