Sponsors (2)
The bill greatly increases transparency and tax-enforcement capability by requiring standardized, jurisdictional reporting from large multinationals, at the cost of higher compliance burdens and risks of exposing commercially sensitive information.
State and federal tax authorities and taxpayers gain stronger ability to detect profit shifting and tax avoidance because covered issuers must report standardized jurisdictional tax, revenue, cash-tax, and related data.
Investors, researchers, and the public get transparent, machine-readable data showing where large multinationals book revenue, profit, taxes paid, assets, and employees by jurisdiction, improving market transparency and investor analysis.
Standardized, machine-readable filings reduce compliance ambiguity and enable automated analysis and comparability across firms, benefiting analysts and potentially lowering long-run reporting friction.
Large multinational issuers must incur substantial new compliance costs to collect, aggregate, and report entity-level and jurisdictional tax and financial data.
Public disclosure of entity legal names, tax IDs, jurisdictions, and detailed jurisdictional tax/financial data could expose commercially sensitive information, raising privacy/confidentiality risks and competitive harms for companies and their partners.
Compliance timing tied to tax return due dates may create administrative and scheduling burdens for issuers operating across many jurisdictions with varied filing calendars.
Based on analysis of 2 sections of legislative text.
Requires large public multinational companies to file annual machine‑readable country‑by‑country tax and entity reports with the SEC and public posting of those reports.
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 publicly traded multinational companies to file an annual, machine‑readable country‑by‑country report with the SEC that lists each constituent entity, its tax residence and incorporation, tax ID, primary business activities, and aggregated financial and tax items by jurisdiction (revenues, profit/loss before tax, cash taxes paid, accrued tax expense, stated capital, retained earnings, employee counts, and tangible asset book value). The SEC must propose implementing regulations within 270 days and issue a final rule within one year; the disclosure requirement begins one year after the SEC issues the final rule. The bill aims to increase corporate tax transparency and make jurisdictional tax, revenue, and entity-level data publicly available in machine‑readable form for investors, regulators, and the public. It directs the SEC to adopt conforming rules and publish the reports online.