In previous articles of our blog we have analyzed the tax novelties of the Royal Decree-Law 27/2018 that concerns to the fiscal end of 2018. To this end, it is necessary to keep in mind the law 11/2018, of December 28th, which modifies the Code of Commerce, the consolidated text of the Capital Companies Law and the Account Auditing Law, in terms of nonfinancial information and diversity. This standard has been in force since 30 December 2018 and is fully applicable for years beginning on January 2018. On the basis of the foregoing, the annual accounts management report for the year 2018 shall also include the State of non-financial information in the terms enforced by this law.


Nonfinanancial information and diversity

The statatement of non-financial information will have to be prepared by the companies that fulfil the following requirements:

  • Companies with an average number of workers during the year above 500.
  • Public interest entity or companies considered as large companies

From the financial year 2021 this obligation shall apply to:

  • Companies with an average number of employees during the year above 250.
  • Public interest entity or companies considered as large companies.

When giving content to non-financial information, major data should be included:

  • Environmental concerns
  • Personeel and social issues
  • Respect for Human Rights
  • Combating corruption and bribery
  • Company data (commitments to sustainable development, subcontracting and suppliers, consumers, tax information)

At the same time, it must be noted that the Non-Financial Information statement must be submitted to the General Assembly for approval and verified by an independent verification service provider. It must also be available to the public on the company’s website, free of charge. Publication must take place within six months of the end of the financial year and for a period of five years.

Tax information country by country

The law specifically points that the fiscal information must include country profits, taxes on paid profits and public grants received.

In this respecy, it is compulsory to publish this information on a country-by-country basis for those companies in which the following attend:

  • An average number of workers employed by the group companies during the financial year of more than 500.
  • Be considered a public interest entity in accordance with auditing legislation, or meet two of the following three requirements at the closing date of the last two financial years: (i) Consolidated assets in excess of 20 million euros; (ii) Consolidated net turnover in excess of 40 million euros (iii) Average number of employees in excess of 250.