The decree law was published this Wednesday in Diário da República (DR). According to the diploma, this obligation is limited to “larger entities that are not established” or that have a “fixed installation or permanent representation, only in a tax jurisdiction”.

The report in question will have to be prepared by the final parent company and the autonomous company that, in the period to which it reports and in the previous one, has consolidated revenue equal to or greater than 750 million euros. Publication must be made within 12 months after the balance sheet date of the reporting period.

Among the information that should be included in the report is the name or business name of the ultimate parent company or autonomous company, the relevant reporting period, the currency used and a brief description of the nature of the company's activities.

If this obligation is not fulfilled, companies are punished with a fine of between 1,500 and 30,000 euros.

This law, which was transposed from Directive (EU) 2021/2101, aims to increase “scrutiny by funders, investors, suppliers, customers, workers and civil society in general, regarding income taxes borne by multinational companies that carry out activity in the European Union and in particular in Portugal”.