Public country-by-country reporting (CbCR) — Luxembourg

The Luxembourg law of 15 August 2023 (Law) implemented Directive (EU) 2021/2101 on the public disclosure of income tax information by certain undertakings and branches (public CbCR). The objective of these obligations is to make public information on the corporate income tax of undertakings and multinational groups that have significant revenue and are established in Luxembourg or have subsidiaries or branches of a certain size in Luxembourg.

The provisions of the Law apply to financial years beginning on or after 22 June 2024. This means that for in-scope undertakings whose financial year aligns with the calendar year, the first reporting obligation relates to the 2025 financial year. The report covering the 2025 financial year must be published before the end of 2026.

Who is in scope?

The following entities established in Luxembourg are subject to the new reporting obligations:

• Ultimate parent undertakings (UPE) established in Luxembourg whose consolidated revenue exceeds EUR 750,000,000 on their balance sheet date for each of the last two consecutive financial years are required to produce, publish and make accessible a report on corporate income tax information covering the most recent of those two financial years.
• Standalone undertakings established in Luxembourg are also required to produce, publish and make accessible a report on corporate income tax information covering the most recent of the last two consecutive financial years when their revenue exceeds EUR 750,000,000 on their balance sheet date for each of those financial years.
• Medium-sized and large subsidiary entities established in Luxembourg that are controlled by an ultimate parent not governed by the law of an EU Member State, where the consolidated revenue of that ultimate parent exceeds EUR 750,000,000 on its balance sheet date for each of the last two consecutive financial years, are required to publish and make accessible the corporate income tax information report of that UPE.
• Branches opened in Luxembourg by undertakings not governed by the law of an EU Member State are subject to reporting obligations where the branch’s net revenue exceeds EUR 8,800,000 for each of the last two consecutive financial years, provided the other in-scope conditions are also met.

What must be reported?

The report must contain information concerning all activities of the standalone undertaking or ultimate parent undertaking, including those of all consolidated related undertakings. In particular, the report must include the following:

• The name of the ultimate parent undertaking or standalone undertaking, the financial year concerned, the currency used and, where applicable, a list of all subsidiary undertakings included in the consolidated accounts that are established in the EU or in jurisdictions listed on the EU black and grey lists.
• A brief description of the nature of activities and the number of employees expressed in full-time equivalents.
• The turnover, the amount of profit or loss before corporate income tax, the amount of corporate income tax due during the financial year and the amount of corporate income tax actually paid.
• The amount of accumulated earnings at the end of the financial year.

The report must present information separately for each EU Member State and, where applicable, separately for each jurisdiction listed on the EU black and grey lists, with aggregated information for all other jurisdictions.

Publication requirements

The report must be filed and published within twelve months of the balance sheet closing date of the financial year to which it relates. The report must be made publicly accessible, free of charge, on the entity’s website in at least one official EU language.

Entities are exempt from publishing on their own website if the report is simultaneously made available in a machine-readable electronic format on the Luxembourg Trade and Companies Register website, free of charge, to any third party in the EU. There is, however, a limited deferral option: certain specific items of information may be temporarily omitted from the report where their disclosure would seriously prejudice the commercial position of the undertakings concerned, provided that any omission is clearly indicated with a duly reasoned explanation. In any event, the omitted information must be published in a subsequent report within a maximum of five years. Information relating to jurisdictions on the EU black and grey lists may never be omitted.

Penalties

Criminal sanctions — fines of EUR 500 to EUR 25,000 — apply to management bodies and permanent representatives of branches who have not produced, published or made available the information report within the statutory deadline. Members of administrative, management and supervisory bodies of in-scope undertakings bear collective responsibility for ensuring that the report is produced, published and made accessible in accordance with the Law.

Next steps — act now: first reports due in 2026

In-scope undertakings with a calendar year end should begin assessing their reporting obligations without delay, with a view to ensuring that all necessary data is collected and the report is ready for publication before the end of 2026. For in-scope undertakings with a diverging financial year end, a different deadline applies. To give an example: for in-scope undertakings whose financial year end is 30 June, the first reporting obligation relates to the financial year ending on 30 June 2025 and the first report must be published before 30 June 2026.