Public country-by-country reporting - iXBRL format

Its purpose is to improve corporate tax transparency and help the public, investors, and tax authorities see more clearly where profits are earned and where tax is ultimately paid. According to the Law on Disclosure of Information on Revenue and Income Taxes, Latvia applies the pCbCR to financial years beginning on or after 22 June 2024.

Who must report in Latvia?

Large multinational groups whose standalone or consolidated revenue is more than EUR 750,000,000 for two consecutive financial years.

Exemption if the whole group (incl. branches) operates only in one tax jurisdiction.

Medium and large subsidiary entities that are controlled by an ultimate parent company outside Latvia (EU or non-EU), where the group’s consolidated revenue exceeds €750 million for at least two consecutive years.

If the parent doesn’t provide the report, the EU subsidiary must file what it has and publish a statement that information was not made available.

Branches of EU or non-EU ultimate parent company where:

• the branch net turnover exceeds EUR 8,000,000 for two consecutive years, and

• the ultimate parent company exceeds EUR 750,000,000 in consolidated/standalone revenue for at least two consecutive years

What is the publication workflow in Latvia?

The pCbCR must be submitted electronically in a machine-readable format to the State Revenue Service (SRS) Electronic Declaration System (EDS) within 12 months after the balance sheet date of the financial year. SRS forwards it to the Enterprise Register, which publishes it on its website.

iXBRL for pCbCr – is it required in Latvia?

Directive 2013/34/EU (Article 48c) sets the content requirements for the income tax information report in all EU member states and requires that the disclosed information be provided in a standardised, machine-readable format using a common template and an electronic reporting format.

The Regulation (EU) 2024/2952 under Article 4(1)(a) states that: “When drawing up the report on income tax information, undertakings shall ensure (…) the use of the XHTML format and the embedding of markups using the Inline XBRL specifications, in accordance with the applicable XBRL specifications set out in Annex II”.

Thus, according to the EU legislative framework, Latvia has adopted the iXBRL format for preparing pCbCr for financial years starting on or after 1 January 2025.

How can Orients Digit help?

1. CbCR Preparation
   We prepare the CbCR report, including the transformation of existing CbCR data into the Public CbCR reporting model.
2. iXBRL Conversion and Technical Compliance
   As experienced iXBRL reporting specialists and certified representatives of the CoreFiling tagging tool, we convert the Public CbCR into the required iXBRL format. We take full responsibility for delivering a technically compliant file that is ready for submission, and provide support with the auditors.
3. Data Consistency and Reconciliation Review
   We compare Public CbCR data with the Master File and other transfer pricing documentation to ensure accuracy and consistency before public disclosure.

Contact us for more.