Public CbC Report
Public CbCR EU Directive
On 11 November 2021, the European Parliament formally adopted the public EU country-by-country (CbCR) reporting directive (“Directive”). All EU countries were required to transpose the Directive into domestic legislation by 22 June 2023. Following this, multinational groups, and where relevant, certain standalone undertakings, should provide the public with a report on income tax information where they exceed a certain size threshold, in terms of revenue, over a period of two consecutive financial years, depending on the consolidated revenue of the group or the revenue of the standalone undertaking.
The suggested timeline of the EU Directive was to publicly disclose the information for financial years starting on or after 22 June 2024 for most groups, resulting in a first reporting obligation for the financial year ending 31 December 2025, no later than 12 months after the period end, i.e. by 31 December 2026. In practice, for MNEs that apply a financial year equal to the calendar year, the first reporting year will be 2025.
The EU Public CbCR Directive (Directive (EU) 2021/2101) was implemented in Hungary through Act XLV of 2022, which amended the Hungarian Accounting Act (Act C of 2000 on Accounting).