The Institute of Accounting and Auditing has marked a milestone in Spain’s fiscal transparency agenda with the publication of recent consultations and amendments to the Technical Auditing Standards. This development focuses on the implementation of Public Country-by-Country Reporting (public CbCR), an obligation arising from Directive (EU) 2021/2101 that requires multinational groups with revenues exceeding 750 million euros to disclose their tax contributions in each jurisdiction where they operate.
The recent consultations published in the BOICAC clarify critical aspects regarding who is subject to the requirement and, above all, the filing deadlines—an issue that has generated significant technical uncertainty due to discrepancies between Spanish and EU regulations.
Discrepancy in deadlines: the 6-month challenge in Spain
One of the main points of contention identified by the ICAC is the difference in reporting deadlines. While the European Directive and most Member States allow up to 12 months after the end of the fiscal year, in Spain it has been interpreted that certain obligations related to the filing and preparation of financial statements could entail a deadline of up to 6 months.
This situation places Spanish subsidiaries in a complex position:
- Spanish parent companies: must prepare, publish, and file the public CbCR within a maximum of 6 months.
- Parent companies in other EU Member States: are governed by the deadline of their country of origin (generally 12 months), which aligns the Spanish subsidiary with that schedule.
- Non-EU parent companies: if the group operates outside the EU and designates a Spanish subsidiary for reporting, the latter must adapt to a stricter deadline, which requires accelerated global coordination that, in many cases, is beyond local control.
The auditor’s role: a new mandatory statement
The impact of this regulation is not limited to the accounting sphere but extends directly to the audit report. According to the Resolution issued in January 2026, auditors must include a formal statement regarding whether the entity was required to file the public CbCR and whether it did so in a timely and proper manner.
For companies whose fiscal year coincides with the calendar year, this obligation will be reflected in the audit reports of the annual financial statements for the 2026 fiscal year. Non-compliance or failure to file not only poses a risk of penalties but will also be publicly disclosed in the auditor’s opinion, affecting the group’s reputation and regulatory compliance.
Public CbCR and Its Link to Transfer Pricing
Although the public CbCR is an exercise in transparency, its content is intrinsically linked to multinationals’ transfer pricing policies. As data on profits, taxes paid, and the number of employees per country are made public, both tax authorities and the general public will be able to assess whether the distribution of profits is consistent with economic substance.
The publication of this data increases scrutiny regarding:
- The consistency between reported profits and the assets and functions in each country.
- The justification of intra-group payments that may be perceived as mechanisms for eroding the tax base.
- The alignment of Transfer Pricing documentation with publicly reported information.
Relevance for Global Compliance
This new landscape requires companies to stop treating country-by-country reporting as a mere informational appendix and instead integrate it into their risk management strategy. The public visibility of this data means that any technical inconsistencies in transfer pricing policy will be much more evident to tax authorities globally.
In this context, it is essential that multinational groups engage in advance planning to:
- Strengthen internal global tax data collection processes.
- Designate the entities responsible for reporting in advance.
- Ensure that the transparency narrative is consistent with their current transfer pricing studies.
Conclusion: Implications for Multinational Groups
The implementation of public CbCR in Spain, under the supervision of the Institute of Accounting and Auditing, confirms that tax transparency is no longer optional but a critical operational requirement. It is no longer enough to merely comply formally; companies must ensure that their tax structure is defensible both before the authorities and in the eyes of the public.
In this context of increased scrutiny and demanding deadlines, having specialized advice is key. At TPC Group, we support organizations in their transition to these new transparency standards, ensuring that their transfer pricing documentation and international reports meet the highest technical and legal standards.
Source: BOICAC – Issue 144