Under new rules multinational firms with more than €750 million in sales will have to detail how much tax they pay in which EU countries and any activities carried out in specific tax havens.
The plans come in the fall-out from the Panama Papers revelations.
Lord Hill, the EU’s financial services commissioner, said: “This is a carefully thought through but ambitious proposal for more transparency on tax.
“While our proposal is not of course focused principally on the response to the Panama Papers, there is an important connection between our continuing work on tax transparency and tax havens that we are building into the proposal.”
Country-by-country reporting rules already apply to banks, mining and forestry companies, according to an EU spokesperson.
Under the new proposals, that would be expanded to cover companies accounting for about 90 per cent of corporate revenues in the EU, they added.
Companies will need to disclose information such as total net turnover, profit before tax, income tax due, amount of tax actually paid and accumulated earnings.
The Commission’s plan would force companies to report what they earn and how much tax they pay in EU countries. But it would also force them to reveal details of their secretive tax havens.
This includes a black list of 30 ‘non-cooperative jurisdictions’ something that the OECD hates because the list was “unfair and subjective.”