Finance Act 2025

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Amendment of section 891H of Principal Act (country-by-country reporting)

50. (1) Section 891H of the Principal Act is amended—

(a) in subsection (1)—

(i) by the substitution of “ ‘constituent entity’, ‘consolidated financial statements’, ‘MNE group’,” for “ ‘constituent entity’, ‘MNE group’,”,

(ii) by the substitution of the following definition for the definition of “country by-country report”:

“ ‘country-by-country report’, in relation to an MNE group, means a report that contains the information set out in subsection (4) and that has been prepared in accordance with the OECD Report of 2015 and the OECD CbCR Guidance;”,

and

(iii) by the insertion of the following definitions:

“ ‘OECD CbCR Guidance’ means the document entitled OECD (2024), Guidance on the Implementation of Country-by-Country Reporting: BEPS Action 13, OECD, Paris, published by the OECD in May 2024;

‘Directive’ means Council Directive 2011/16/EU of 15 February 2011³⁴ as amended by Council Directive 2014/107/EU of 9 December 2014³⁵ , Council Directive (EU) 2015/2376 of 8 December 2015³⁶ , Council Directive (EU) 2016/881 of 25 May 2016³⁷ , Council Directive (EU) 2016/2258 of 6 December 2016³⁸ , Council Directive (EU) 2018/822 of 25 May 2018³⁹ , Council Directive (EU) 2020/876 of 24 June 2020⁴⁰ , Council Directive (EU) 2021/514 of 22 March 2021⁴¹ , Council Directive (EU) 2023/2226 of 17 October 2023⁴² and Council Directive (EU) 2025/872 of 14 April 2025⁴³ ;”,

and

(b) by the insertion of the following subsections after subsection (11):

“(12) For the purposes of—

(a) determining whether a group is an MNE group, and

(b) preparing a country-by-country report or equivalent country by country report, as the case may be, to be provided to the Revenue Commissioners,

this section and any regulations made under this section shall be construed so as to ensure, as far as practicable, consistency between—

(i) the effect which is to be given to this section and any regulations made under this section, and

(ii) the effect which would be given if the OECD model legislation were to be applied, in accordance with the OECD Report of 2015 and the OECD CbCR Guidance, to—

(I) the determination of whether a group is an MNE group, and

(II) the preparation of a country-by-country report or equivalent country-by-country report, as the case may be, to be provided to the Revenue Commissioners,

other than where such an application of this section and regulations made under this section would be inconsistent with the Directive.

(13) (a) For the purposes of determining whether a group is an MNE group, when applying the €750 million threshold provided for in Article 1.3 of the OECD model legislation—

(i) where the preceding fiscal year of the ultimate parent entity was less than 12 months, the €750 million threshold shall be decreased pro rata,

(ii) where the group (in this subparagraph referred to as ‘the first mentioned group’) existed as part of another group in the preceding fiscal year and the current fiscal year is the first fiscal year that it is no longer part of the other group and exists as an independent group, the first-mentioned group shall be deemed to have had consolidated group revenue of less than €750 million in the preceding fiscal year, and

(iii) subject to paragraph (b), extraordinary income and gains of the group from investment activities shall be included in the consolidated group revenue if such income and gains are presented in the consolidated financial statements of the ultimate parent entity in accordance with the applicable accounting principles under which the consolidated financial statements were prepared.

(b) Paragraph (a)(iii) shall not apply where the ultimate parent entity or surrogate parent entity of the MNE group are tax resident in a jurisdiction which, for the purposes of determining whether there is a requirement for the ultimate parent entity or surrogate parent entity, as the case may be, to file a country-by-country report in that jurisdiction, does not require extraordinary income and gains from investment activities to be included in the consolidated group revenue unless these items are included in revenue in accordance with the applicable accounting principles under which the consolidated financial statements were prepared.”.

(2) Subsection (1) shall apply to accounting periods ending on or after 1 January 2026.

³⁴ OJ No. L64, 11.3.2011, p.1

³⁵ OJ No. L359, 16.12.2014, p.1

³⁶ OJ No. L332, 18.12.2015, p.1

³⁷ OJ No. L146, 3.6.2016, p.8

³⁸ OJ No. L342, 16.12.2016, p.1

³⁹ OJ No. L139, 5.6.2018, p.1

⁴⁰ OJ No. L204, 26.6.2020, p.46

⁴¹ OJ No. L104, 25.3.2021, p.1

⁴² OJ L, 2023/2226, 24.10.2023

⁴³ OJ L, 2025/872, 6.5.2025