Act 11/2018, dated 28th December, transposing Directive 2014/95/UE, and amending the Spanish Code of Commerce, states an obligation for certain Corporate Finance Groups of preparing a consolidated non-financial statement, to be included in the consolidated annual report prepared by the Directors. This obligation is applicable, in general, to periods beginning on or after 1st January 2018.

This new non-financial statement must include the following tax information on a country-by-country basis: profits obtained; profit taxes paid; and public subsidies received.

This obligation applies to groups with more than 500 employees and, in addition, during two consecutive financial years since 2017, meet 2 from the 3 following requirements: Consolidated assets over 20 million euros; turnover over 40 million euros; and average number of employees over 250.

In consequence, Spanish Corporate Finance Groups operating in other countries will have to disclose this information in their consolidated annual accounts even in case they are not subject to the Country-by-Country reporting obligation before the Spanish Tax Authorities (which is the case if the turnover of the worldwide group is under 750 million euros).

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