Tax Alert | Multinationals: New Transparency Requirements in 2024

Tax Alert | Multinationals: New Transparency Requirements in 2024

31of August 2023


Starting from June 22, 2024, companies (whether they are companies, subsidiaries, and/or branches) that meet specific criteria are required to compile and publicly disclose a new financial information report. Among other elements, this report will highlight recognized income taxes and payments made, broken down by tax jurisdiction or European Union Member State.

This obligation is a result of the enactment of Decree-Law n.º 73/2023, which was formally published in the Portuguese Official Journal on August 23.

The decree applies to larger entities that are not established, or have a fixed establishment or permanent representation, in only one tax jurisdiction.


This legislation, transposed from Directive (EU) 2021/2101, aims to amplify scrutiny from financiers, investors, suppliers, customers, employees, and civil society at large.

The law seeks to provide deeper insights into income taxes carried by multinational corporations operating within the European Union, particularly in Portugal, contributing to enhancing citizens confidence in the fairness of national tax systems.

Practical Implications

Among other practical implications, we would like to highlight the following:

  • This obligation applies to entities with consolidated revenue equal to or exceeding 750 million euros and that are not established, or have a fixed establishment or permanent representation, in only one tax jurisdiction.
  • The preparation of the report is mandatory both for the parent company and for autonomous companies that meet the mentioned criteria.
  • The report must be publicly accessible within 12 months from the balance sheet date of the reporting period and should include the following elements (reported according to specific rules):
    • Information related to all activities of the autonomous company or the ultimate parent company, including those of all consolidated affiliated companies in the financial statements, for the reporting period of the report.
    • The name or business name of the ultimate parent company or autonomous company, the relevant reporting period, the currency used for the presentation of the report, and, if applicable, a list of all consolidated subsidiaries in the financial statements of the ultimate parent company, concerning the reporting period of the report, established in a European Union Member State or in tax jurisdictions included in Annexes I and II of the Council Conclusions on the revised EU list of non-cooperative jurisdictions for tax purposes.
    • A brief description of the nature of its activities.
    • The number of full-time equivalent employees.
    • Overall revenue.
    • Amount of results before income taxes.
    • Amount of income tax recognized in the relevant reporting period.
    • Amount of income tax paid.
    • Amount of retained earnings at the end of the relevant reporting period.

Non-compliance with these legal requirements may result in penalties ranging from 1.500 a 30.000 euros.

Our Recommendation

Given the requirement and the potential business impact of this disclosure, we advise multinational economic groups to proactively, informedly, and promptly prepare to ensure compliance with these new legal requirements.

We are, of course, at your disposal should you require specialized assistance in this area.


The information above is not intended to be an exhaustive analysis of all the changes to the current legal regime, but a selection of those that we believe to be the most relevant, and do not dispense with consulting our Company and/or the diplomas to which they refer.

For more information contact: Catarina Breia (+351 91 7575 832 or from our Tax Department.

2023-08-31T11:33:36+00:00 Agosto 31st, 2023|Nexia internacional|