KPMG | 1 CPE | FASB Draft Income Tax Disclosures – Tax Transparency Considerations
The Financial Accounting Standards Board (FASB)’s March 15, 2023 Exposure Draft on Improvements to Income Tax Disclosures proposes to provide significantly more transparency around a company’s tax affairs with country-by-country tax payment disclosures, enhanced effective tax rate reconciliation detail, and even country-by-country rate reconciliation and qualitative disclosures. If adopted in its current form, this will be a significant ‘data lift’ for most US reporting entities. But it doesn’t stop there. EU Member States across Europe are now proposing domestic legislation to implement the EU’s public country-by-country tax disclosure directive. And other governments are following suit with disclosure requirements that go well beyond the EU directive. Some of these new reporting requirements could affect companies for financial years starting in 2023.
Please join the KPMG Tax ESG, Income Tax Accounting, and Washington National Tax professionals for a discussion on what all this means, where we think it is going, and how these proposals may impact your business today. We’ll also address the implications of greater tax transparency on business, governments, and public tax policy.