WeVote
Log In

Bill

Bill

S 5019

Disclosure of Tax Havens and Offshoring Act

119th Congress Introduced by Tammy Baldwin and 9 co-sponsors

Requires large multinationals to publicly report country-by-country financials by tax jurisdiction, including revenues, profits, taxes, employees, and assets.

Introduced in Senate
0
WeVote Research Nonpartisan
Bill Summary · S 5019

Overview

S. 5019, the Disclosure of Tax Havens and Offshoring Act, proposes amendments to the Securities Exchange Act of 1934 to require country-by-country reporting by certain multinational issuers. Introduced in the 119th Congress on July 16, 2026, the bill aims to improve transparency around how multinational enterprise (MNE) groups allocate revenue, profits, and taxes across jurisdictions, including tax havens and offshored activities.

Purpose and intent

  • Increase transparency of financial performance and tax-related data at a country level for large multinational issuers.
  • Enable investors, regulators, and the public to assess where profits are earned, where taxes are paid, and how value is created across jurisdictions.
  • Align with United States and international standards for country-by-country reporting.

Key provisions and changes

  • Add a new country-by-country reporting requirement to Section 13(p) of the Securities Exchange Act (as added by the bill), mandating a covered issuer to disclose financial performance by tax jurisdiction.
  • Definitions:
    • Constituent entity: a separate business entity within a covered issuer.
    • Covered issuer: an issuer that is part of an MNE group with annual revenue above a threshold determined by the Commission to align with US or international standards for CbC reporting.
    • Tax jurisdiction: any jurisdiction with fiscal autonomy (including US territories with fiscal autonomy) that is not a country.
  • Reporting scope and content:
    • Information on each constituent entity, including legal name, tax residence, incorporation jurisdiction, tax identification numbers, and main business activities.
    • For each tax jurisdiction where one or more constituent entities reside, aggregated data on:
    • Revenues from transactions with other constituent entities and those external to the group.
    • Profit or loss before income tax.
    • Total income tax paid on a cash basis to all tax jurisdictions.
    • Total accrued tax expense.
    • Stated capital, total accumulated earnings.
    • Total number of full-time equivalent employees.
    • Net book value of tangible assets (excluding cash, intangibles, and financial assets).
  • Special rules: Aggregate or consolidate data for entities with no tax residence; ownership structures where an entity owns another lacking a residence are handled by aggregating with the owner’s tax jurisdiction.
  • Reporting period: Align with the 12-month period of the covered issuer’s financial statements or, if none, the 12-month period ending with the issuer’s taxable year.
  • Filing deadline: Reports due on or before the due date (including extensions) for the issuer’s tax return in the issuer’s resident tax jurisdiction.
  • Regulatory framework: The SEC will issue regulations to implement the rule, conforming to US or international CbC standards (including IRS regulations).
  • Compliance timeline:
    • Proposed rule within 270 days of enactment; final rule within 1 year.
    • The new reporting requirement becomes effective 1 year after the final rule is issued.

Who is affected

  • Covered issuers: Large multinational issuer groups meeting the revenue threshold set by the Commission.
  • Constituent entities: Individual subsidiaries or subsidiaries’ units within the issuer’s corporate group.
  • Tax jurisdictions: All jurisdictions where constituent entities reside, including territories with fiscal autonomy.

Procedural and timeline aspects

  • Legislative process: Introduced in the Senate and referred to the Committee on Banking, Housing, and Urban Affairs.
  • Rulemaking timeline: SEC must issue a proposed rule within 270 days; a final rule within 1 year of enactment.
  • Data format and accessibility: Required to provide data in a machine-readable format, publicly available online as specified by the Commission.
  • Effective date: Subsection (t) reporting requirements take effect 1 year after the final rule is issued.

Potential impact

  • Greater transparency on tax posture and intercompany transactions across jurisdictions.
  • Enhanced ability for investors and policymakers to analyze tax strategy, transfer pricing, and tax revenue contributions by country.
  • Additional regulatory compliance burden for large multinational issuers, including data collection and reporting discipline.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.