The government has launched a public consultation on Ireland’s implementation of EU Directive 2021/2101 on the disclosure of income tax information by certain undertakings and branches.

The Directive introduces for the first-time public country-by-country reporting of corporate tax information by multinational enterprises (MNE), regardless of whether they are headquartered in the EU or not, with a net turnover of more than €750m, and who are doing business in the EU, including through subsidiaries and branches, for each of the last two consecutive financial years.

There are two discretionary member state options under the Directive, which are the subject of the consultation launched today and running until 18 February 2022.

Robert Troy, minister for trade promotion, digital and company regulation, said: “For the first time, non-EU multinationals doing business in the EU through subsidiaries and branches will also have to comply with the same reporting obligations as EU multinationals.

“It is an important development to restore public trust in the fairness and transparency of our tax system and to ensure a level playing field between EU and third-country multinational enterprises.”

He added: “With the introduction of public country-by-country reporting, Ireland along with the other 26 EU member states will become global leaders in the promotion of corporate transparency. This is good for business, good for employees and good for the general public.

“I therefore urge all interested parties, including not for profit organisations, consumers, and businesses to consider the objectives of the Directive and to share their views on how the Directive should be implemented in Ireland.”

The Directive, which was agreed and published in the Official Journal of the EU on 1 December 2021, enters into force on 21 December 2021 and must be transposed into Irish law by 22 June 2023.