A part of Watch Media

MedWatchSaturday4 February 2023

  • Search
  • Log in
  • Pharma & biotech
  • Medtech
  • Hearing health
  • Regulation
  • Other
  • Search
  • Log in
  • Latest
  • Search
  • Log in
  • Pharma & biotech
  • Medtech
  • Hearing health
  • Regulation
  • Other
02/06/2021at 11:01

EU deal forces large firms to share tax information

From 2023 onwards, multinational companies with an annual revenue above EUR 750m will have to publicize how much tax they pay in the 27 member countries of the EU, and how much they pay in countries on the EU's tax haven blacklist.
Photo: Thomas Borberg/Ritzau Scanpix
BY RITZAU FINANS AND ALBERT RØNNING ANDERSSON, TRANSLATED BY NIELSINE NIELSEN

On Tuesday, the European Parliament and the governments of the EU countries agreed on a deal which will force multinational companies to publish their tax information, according to news agency Reuters.

More specifically, large global companies with annual revenues surpassing EUR 750m (USD 915.4m) will have to give information on how much tax they are paying in the 27 member countries of the EU, and how much they pay in countries on the EU's tax haven blacklist.

The companies will be obliged to share information on their income and number of employees in the EU and in other countries on their websites.

Attempts at closing this deal had been at a standstill since 2016.

The deal is part of the EU's efforts to combat the tax evasion by large multinational companies. The EU is in dire need of finances to get the economy back and running after the covid-19 pandemic.

The European Parliament calls the deal a milestone in an announcement, but multiple organizations criticize the deal for not being sufficiently comprehensive.

Non-governmental organizations such as Transparency International, Oxfam, Eurodad and Public Services International are a few of the companies which have criticized the reach of the deal, according to Politico.

The NGOs are particularly unsatisfied with the fact that multinational companies will only be forced to share detailed tax information from the EU and countries on the EU's blacklist of tax havens, but not from the rest of the world.

"This means that companies’ operations in most of the world will still be exempt from public scrutiny," says Transparency International Senior Policy Officer Elena Gaita.

She adds that "the proposed legislation as it stands is almost meaningless."

Novo Nordisk divulges tax payments in other countries

Currently, the EU's list of tax havens includes 21 countries. According to Oxfam, this means more than three quarters of the world's almost 200 countries are exempt from the new regulation.

Politico reports that during negotiations, the EU parliament tried to include global activities in the new deal. The majority of the EU governments turned this down.

In spite of the criticism, the media states that the European Commissioner for Economy, Paolo Gentiloni, calls the deal a step in the right direction.

According to the Tax Justice Network, 36 percent of all lost tax income globally comes from EU member countries. The firms' tax evasion costs the world's countries around USD 154bn globally.

In Denmark, Novo Nordisk announced in February that it would present its tax payments at a regional level, and it will report intellectual rights conditions, the extent of production and the regional distribution of its total sales.

Coloplast is also taking tax payment transparency into consideration. The medtech company has previously been put under pressure by multiple large pension funds, who have called for more transparency from the firm.

In 2019, Novo Nordisk owner Novo Holdings was once again the largest tax payer in Denmark with tax payments amounting to just over DKK 8.2bn, equivalent to a 16.1 percent increase compared with 2018 where Novo Holdings paid DKK 7.06bn.

New regulation means stricter requirements for medtech firms 

Global tax agreement could prompt Novo Nordisk to take tax payments elsewhere 

Novo Nordisk increases transparency on tax payments 

Related articles:

  • New regulation means stricter requirements for medtech firms

    For subscribers

  • Photo: Tidsvilde Stine/Ritzau Scanpix

    Global tax agreement could prompt Novo Nordisk to take tax payments elsewhere

    For subscribers

  • Photo: Stine Tidsvilde

    Novo Nordisk increases transparency on tax payments

    For subscribers

Sign up for our newsletter

Stay ahead of development by receiving our newsletter on the latest sector knowledge.

!
Newsletter terms

Front page now

Nu mangler kun en endelig vedtagelse i EU-Parlamentet, før lovforslag om at udskyde deadlines for nye krav til medicinsk udstyr. er en realitet. | Foto: Thomas Borberg/Ritzau Scanpix
Medtech

Another hurdle overcome in delaying MDR deadline

EU member countries have voted unanimously to adopt an EU Commission proposal to stagger the implementation of the new Medical Device Regulation. Now, only the EU Parliament’s vote remains. 
  • Asensus Surgical wins CE Mark for intelligent surgical unit under MDR rules
  • EU Commission to give more time for MDR transition

For subscribers

Foto: Stine Tidsvilde
Pharma & biotech

Novo Nordisk hopes to retain employees with share gift

For subscribers

Foto: MedWatch
Other

Top news from MedWatch this week

Luja can potentially solve a long-lived UTI problem for people who need help with bladder control issues by using new micro-hole technology
Medtech

Coloplast to set new treatment standard with Luja – but keeps sales goal under wraps

For subscribers

Foto: Coloplast/pr
Medtech

Coloplast launches male catheter featuring new technology

For subscribers

Foto: Coloplast / Pr
Medtech

Coloplast's bottom line disappoints in otherwise strong report

For subscribers

Further reading

Lars Fruergaard Jørgensen, CEO at Novo Nordisk | Foto: Stine Bidstrup
Pharma & biotech

Potential blockbuster submitted by Novo Nordisk for European approval

The EMA can begin reviewing hemophilia treatment concizumab, which used to carry the orphan drug badge until recently, when the company decided not to take advantage of the status.

For subscribers

Foto: Stine Tidsvilde
Pharma & biotech

Novo Nordisk hopes to retain employees with share gift

All Novo Nordisk employees have been offered 37 restricted stock units, which can be turned into real B shares in Aug. 2026.

For subscribers

Foto: Tidsvilde Stine/Ritzau Scanpix
Pharma & biotech

Novo Nordisk declared world's best place to work in 2022

The Best Places to Work organization has released its 2022 list of the best workplaces across the world, and Danish Novo Nordisk shines at the top.

For subscribers

Latest news

  • Top news from MedWatch this week – 3 Feb
  • Coloplast to set new treatment standard with Luja – but keeps sales goal under wraps – 3 Feb
  • China accepts regulatory filing for ALK allergy tablet – 3 Feb
  • Another hurdle overcome in delaying MDR deadline – 3 Feb
  • Dupixent becomes ninefold blockbuster – 3 Feb
  • ALK forecasts lower growth in 2023 than strong 2022 result – 3 Feb
  • Unilabs and Siemens Healthineers enter million-euro strategic partnership – 3 Feb
  • Coloplast launches male catheter featuring new technology – 3 Feb
  • Novo Nordisk hopes to retain employees with share gift – 3 Feb
  • Coloplast's bottom line disappoints in otherwise strong report – 3 Feb
See all

Jobs

  • Experienced Patent Counsel

  • Clinical Operational Associate

  • Lead Data Architect

  • Specialist for the supply of pharmaceuticals to Danish hospitals

  • Supply Chain Manager

  • Commercial Director

  • Regulatory Affairs Professional

  • Senior Clinical Project Manager

  • Medical Advisor (Metabolism)

  • Sr. Director, Drug Safety Physician

  • Application Manager

  • Senior Health Economics and Outcomes Research (HEOR) Manager

  • Application Manager

See all jobs

Jobs

  • Experienced Patent Counsel

  • Clinical Operational Associate

  • Lead Data Architect

  • Specialist for the supply of pharmaceuticals to Danish hospitals

  • Supply Chain Manager

  • Commercial Director

  • Regulatory Affairs Professional

  • Senior Clinical Project Manager

  • Medical Advisor (Metabolism)

  • Sr. Director, Drug Safety Physician

  • Application Manager

  • Senior Health Economics and Outcomes Research (HEOR) Manager

  • Application Manager

See all jobs

Colophon

MedWatch
Search

Sections

  • Pharma & biotech
  • Medtech
  • Hearing health
  • Regulation
  • Other
  • Sitemap
  • RSS feeds

Editor

Mikkel Aabenhus Hemmingsen

mah@medwatch.dk

Tel.: +45 3330 8387

Editor-in-chief

Anders Heering

Publisher

JP/Politiken Media Group Ltd

Advertising

annoncering@infowatch.dk

Tel.: +45 7077 7441

Advertising

Job Advertising

job@infowatch.dk

Tel.: +45 7077 7441

Jobs

Subscription

Try MedWatch or get an offer for a subscription meeting the exact needs of you or your company.

medwatch@infowatch.dk

Tel.: +45 7077 7441

Learn more about subscriptions here

Address

MedWatch

Rådhuspladsen 37

1785 Copenhagen K, Denmark

Tel.: +45 3330 8370

Guidelines

  • Privacy Policy

Copyright © MedWatch — All rights reserved

Microsoft is in the process of discontinuing Internet Explorer – and so are we.
For a better experience, we recommend using one of the following browsers.

Kind regards,
MedWatch

Google ChromeMozilla FirefoxMicrosoft Edge