The next round of tax transparency: Insights from the first wave of mandatory tax reporting
As new international tax reporting regimes take effect, PwC’s twelfth annual review of tax transparency and tax sustainability reporting across the FTSE100 explores how businesses are responding to this evolving landscape. This year’s publication examines the first wave of disclosures under Pillar Two, EU Public Country-by-Country Reporting (pCbCR), and the EU’s Corporate Sustainability Reporting Directive (CSRD), alongside broader trends in tax and tax-related sustainability reporting.
Drawing on insights from our review of the UK’s largest listed companies, the report supports tax leaders as they prepare for the second wave of mandatory tax reporting starting in 2025 and into 2026.
To understand how your business compares - or to request a personalised benchmarking report - please get in touch.
Public Country-by-Country Reporting
Country-by-country reporting (CbCR) was devised by the OECD back in 2016 as a high-level risk assessment tool to be privately used by tax administrations.
The EU reached consensus on public CbCR at the end of 2021. Individual States are currently implementing the proposals into domestic legislation with multinational corporations (MNCs) in scope required to publish information for financial years beginning on or after 22 June 2024.
Read our 10-step plan for more information on how to prepare for the publication of your CbCR data.
Download CbCR report(PDF, 264.59kb)
Global Reporting Initiative - 207 Tax Standard
The GRI is widely considered to be a global standard for sustainability reporting. The 207 Tax Standard was introduced in 2019 following heightened stakeholder interest in the tax affairs of MNCs, and represents the wider integration of tax within broader environmental, social and governance (ESG) topics.
It was announced in March 2022 that the GRI and the new International Sustainability Standards Board (ISSB) would harmonise their standard-setting activities, effectively establishing a global baseline for ESG reporting.
In this rapidly developing transparency landscape, what percentage of companies in the FTSE100 are aligning themselves to the GRI?
Download GRI - 207 Tax Standard
(PDF, 207.01kb)
Task Force for Climate-Related Financial Disclosures
The Task Force for Climate-Related Financial Disclosures (TCFD) became applicable to premium listed companies from 1 January 2021, with this extending to incorporate certain private companies from 6 April 2022.
The TCFD framework is above all about disclosing the financial impacts of climate change. Within the broader policy perspectives of environmental, social and governance (ESG) topics, climate change is not only a long-term issue affecting companies, but one that needs consideration today.
But why is tax an important element to TCFD? And in what ways should Tax be considered in the preparation of this disclosure? Download our TCFD to find out.
Download TCFD(PDF, 299.05kb)
World Economic Forum Metrics
As demand from stakeholders for high quality, transparent and comparable corporate reporting has grown over recent years, the World Economic Forum (WEF) issued its Stakeholder Capitalism Metrics in September 2020 in response. Tax is included in the form of the taxes borne element of Total Tax Contribution Methodology.
Could aligning with the WEF tax metric be a starting point for a broader transparency journey for your business? Download our WEF publication to find out more.
Download WEF Metrics(PDF, 157.28kb)
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