Sponsors (2)
The bill substantially increases transparency and aids tax enforcement and investor analysis by requiring standardized jurisdictional reporting from large multinationals, but it imposes measurable compliance costs and risks exposing commercially sensitive or private information.
State and federal tax authorities and regulators can better detect profit shifting and tax avoidance because covered issuers must file standardized jurisdictional tax, revenue, and cash-tax data.
Investors, taxpayers, and the public gain standardized, machine-readable disclosures showing where large multinationals book revenue, profit, taxes paid, assets, and employees by jurisdiction, improving transparency and scrutiny.
Investors, researchers, and watchdogs face less ambiguity and can automate analysis because filings are standardized and machine-readable, improving comparability and analytic efficiency.
Large multinational companies must incur increased compliance costs to collect, aggregate, and report detailed entity-level and jurisdictional tax and financial data.
Covered companies and third parties face privacy and confidentiality risks because disclosure of entity legal names, tax IDs, and jurisdictions could expose commercially sensitive information.
Firms risk competitive harm because public reporting of detailed cross-border tax and business-structure data could reveal strategies and operations to competitors.
Based on analysis of 2 sections of legislative text.
Requires large multinational issuers to file annual, machine‑readable country‑by‑country entity and jurisdictional tax and financial reports with the SEC.
Official title: To amend the Securities Exchange Act of 1934 to require country-by-country reporting.
Introduced July 16, 2026 by Brittany Pettersen · Last progress July 16, 2026
Requires large multinational public companies to file an annual, machine-readable country-by-country report with the SEC listing each constituent entity, its tax residence and incorporation, tax identifiers, primary activities, and aggregated financial and tax items by jurisdiction. The SEC must propose a rule within 270 days and finalize it within one year; the reporting requirement takes effect one year after the SEC issues the final rule.