Elevating tax transparency in the era of Public Country-by-Country Reporting

Tax transparency has become a crucial aspect of corporate responsibility. Recognising the significant role that tax plays in contributing to public funds, external stakeholders are demanding greater insight into how organisations manage their tax affairs. Regulators are responding with increased tax reporting requirements to enhance corporate transparency.

One such requirement is Public Country-by-Country Reporting (PCbCR), now in force across EU member states. The publication of potentially sensitive country-level data is likely to lead to increased external scrutiny and potential misinterpretation of organisations’ tax footprint. Therefore, tax departments should consider the benefits of providing supplementary disclosures to control their narrative.

The Corporate Sustainability Reporting Directive (CSRD) adds another layer of complexity for tax departments. When tax is deemed a material topic, companies will be required to make qualitative and quantitative tax disclosures in their management reports. It is noteworthy that some companies are determining that tax is material. Even if tax is not deemed a material topic, companies will be required to confirm their alignment with the EU Taxonomy which involves ensuring compliance with minimum safeguards, one of which is tax.

Against this backdrop, the fourth edition of our Tax Transparency Report examines the tax disclosures of 25 multinational companies headquartered in Ireland* using PwC’s Global Tax Transparency Framework.

Our framework and this report aim to help companies consider the benefits of greater tax transparency based on their specific profile and stakeholder interests. It should also assist companies in shaping their external communications strategies regarding tax, particularly in preparation for the disclosure of PCbCR data.

^{* We reviewed the tax disclosures of 25 multinational companies headquartered in Ireland. Our review was strictly limited to publicly available information for financial years ending in 2023, as published by 31 December 2024.}