The Spanish authorities have finalized the requirements for the Public Country-by-Country Report (Public CbCR), designed to guarantee corporate transparency regarding income tax information. This institutional move follows the transposition of Directive (EU) 2021/2101 through Law 28/2022. 

New commercial and tax reporting 

Following months of technical debate and regulatory adaptation, the Public CbCR establishes the formal obligation to disclose tax and financial information broken down by jurisdiction. This document constitutes a public return that multinational groups subject to the new transparency rules must file. 

Filing requirements 

Unlike traditional confidential tax returns, the Public CbCR must be published in two ways: 

1. commercial register (“registro mercantil”): filed alongside the Annual Accounts using a machine-readable electronic format (iXBRL); 
2. corporate website: made accessible to the general public free of charge for a minimum of 5 years. 

Scope (subject entities) 

Entities subject to these new obligations include multinational groups with global consolidated revenues of €750 million or more in each of the last two consecutive financial years. 

Warning for subsidiaries and branches in Spain: the reporting responsibility does not solely fall on the parent company. Medium and large subsidiaries, as well as certain branches operating in Spain that belong to these multinational groups, will be directly affected and are legally required to publish their parent’s report and file it with the Spanish Commercial Register if the parent entity fails to do so. 

Relevant deadlines (first fiscal year) 

The obligation applies to financial years starting on or after June 22, 2024. 

Shortened deadline in Spain: while the EU Directive grants 12 months, Spain requires the report to be filed within a maximum of 6 months after the close of the fiscal year (e.g., by June 30, 2026, for FY 2025). 

Relationship with Fiscal CbC and Pillar 2 

It is crucial to understand how this new obligation interacts with other corporate and reporting requirements. The table below illustrates the main differences between the upcoming Public CbCR, the traditional Fiscal CbC, and the new Pillar 2 rules: 

Expected corporate impact 

The implementation of this report represents a qualitative leap in transparency obligations for multinational groups in Spain. Affected companies now face the challenge of coordinating data across various subsidiaries and jurisdictions 6 months earlier than the traditional Fiscal CbC, requiring considerable organizational foresight to meet these new obligations with precision and within legal timeframes. 

Investment in Spain continues to increase significantly year after year, consolidating the macroeconomy and strengthening its position as an investment destination. If you manage the finance department of a multinational or an investment fund, do not hesitate to contact us to learn more about our international services. 

At Auxadi, we offer comprehensive services in accounting, tax, payroll, transfer pricing and corporate legal services to multinationals and funds. With experience since 1979 and a presence in over 50 countries, including 26 proprietary subsidiaries, our advanced technological platform, MySPV, and proven methodology enable us to guarantee efficient management in compliance with local regulations. 

Author:

Antonio Pina

Transfer Pricing Director – ES