For tax leaders across the globe, tax transparency and tax sustainability reporting are moving up the agenda. This prioritisation isn't just about meeting compliance requirements––it's also about managing reputational risk. Investors, employees, and other stakeholders are paying closer attention to the taxes companies pay and the stories they tell and about their contribution to society.
Driving this shift is a reshaping of the global tax reporting landscape, from voluntary to mandatory disclosure, with initiatives such as Public Country-by-Country Reporting (pCbCR) and the EU’s Corporate Sustainability Reporting Directive (CSRD)––now starting to take effect.
The results from this year’s study show that companies are beginning to respond to this new reality. 270 companies, representing 30% of all 956 companies reviewed, disclosed some form of their Total Tax Contribution (TTC). With tax functions under pressure, TTC is increasingly being used as a strategic foundation––helping companies meet compliance obligations, adapt to new reporting requirements, and mitigate reputational risk by providing the basis for a consistent, stakeholder-driven narrative.
In our experience, formulating an approach to tax transparency and TTC takes time. And benchmarking to peers and competitors is a critical part of that journey.
At the same time, Pillar Two is creating new demands, requiring companies to collect and validate hundreds of new data points across their global operations—stretching already lean tax teams. Tax leaders are increasingly rethinking how the tax function operates and accelerating transformation plans in response.
Leading into the future, the real differentiator will be how companies strengthen governance and harness technology to manage Pillar Two data—turning a compliance exercise into a platform for reinvention.
These pressures are not unique to tax. A recent PwC WEF white paper highlights the mounting challenge companies face in navigating regulatory fragmentation, rising data demands, and the need to align compliance across multiple regimes. View these alongside climate risk and complex trade requirements, and you’ll find opportunities emerging to enhance tax transparency and integrate tax sustainability reporting as part of a broader strategy for sustainable long-term growth.
Key findings
Our analysis of 956 of the world’s largest multinational corporations (MNCs) from across 24 territories provides insights into how businesses are responding and preparing for these reporting regulations.
Interactive data explorer by territory or sector
Take a deeper dive into individual territory and industry results using our interactive data explorer. And discover the national and sector-specific factors influencing the tax and tax-related sustainability reporting of 956 companies.
To understand how your business compares—or to request a personalised benchmarking report—please get in touch with the relevant contacts listed at the bottom of the website or within the territory views of the data explorer.
From data to story—How Total Tax Contribution is becoming the tax disclosure of choice
What did this year’s study find?
- 270 companies disclosed some form of their Total Tax Contribution (TTC), a 22% increase on last year. This represents nearly 30% of all companies reviewed in the study.
- 167 companies published a full TTC profile, covering both taxes borne and collected.
- Together, these companies reported US$904 billion in TTC–made up of US$369 billion of taxes borne and US$535 billion in taxes collected.
So, what is our takeaway?
- With tax teams under increasing pressure, TTC provides a ready-made framework to turn tax data into a credible, connected narrative stakeholders can understand and trust.
- At the same time, it elevates the role of tax internally by giving management clearer insights to better inform investment decisions.
- The shift from voluntary to mandatory reporting makes TTC a valuable foundation for upcoming requirements, like pCbCR and CSRD.
What can organisations do next?
- Prepare early: Start by collecting TTC data as a foundation for compliance with upcoming reporting regimes and keep disclosure optional until the time is right.
- Tell your tax story: Use TTC to highlight taxes in your business model that may otherwise be overlooked, providing stakeholders with a fuller picture of your contribution.
- Build trust: Shape the conversation now, rather than reacting to it later.
This year, 270 companies disclosed their TTC—an increase of 22% on last year’s review and representing close to 30% of all companies in the study.3 Of these,167 published a full profile covering both taxes borne and taxes collected, reporting a total of US$904 billion in TTC (US$369 billion in taxes borne and US$535 billion in taxes collected). These figures underline the scale of the contributions made by these companies to the public finances globally.4
For many businesses, simply collecting TTC data has become a practical first step. Even if disclosure is considered later, having a consolidated dataset builds readiness for new tax reporting requirements, such as pCbCR and CSRD, and it gives tax teams more control in an environment where they are being asked to do more with less.
At the same time, TTC provides visibility into taxes that are often overlooked in public debate. Every business model creates a distinct tax footprint—from payroll taxes to irrecoverable value-added tax (VAT). TTC helps contextualise those contributions beyond corporate income tax alone.
Finally, TTC is increasingly being used to reinforce credibility and build trust. By turning raw data into a compelling story, companies can show how their tax contribution reflects their business model and underpins their positive contribution to society—positioning tax as more than just a compliance exercise.
From concept to compliance—Pillar Two reporting becomes a reality
What did this year’s study find?
In 23 of the 24 territories in our study (all except the US), International Financial Reporting Standards (IFRS) now require in-scope companies to disclose the impact of Pillar Two top-up taxes in their financial statements.
509 companies made a Pillar Two disclosure, representing 55% of all companies reviewed in those territories.
So, what is our takeaway?
Companies are required to gather more tax data points than ever before, often from outside central systems, stretching already pressured tax functions.
Many companies are turning to technology, automation, and AI to manage the scale and complexity of Pillar Two.
This first wave of disclosures is a significant moment in international taxation—creating a new baseline for transparency and government expectation.
What can organisations do next?
Strengthen data foundations: Put in place centralised processes and controls to capture and validate data required for Pillar Two.
Harness technology strategically: Embed automation and AI to not only reduce manual effort and improve accuracy, but also to generate insights that can inform wider business strategy and drive transformation across the tax function.
Build credibility: Position Pillar Two disclosures as part of a broader tax transparency journey, recognising that the primary stakeholders for these disclosures are governments and tax authorities. By demonstrating robust governance and compliance to these key audiences, organisations can build trust with regulators and showcase their readiness for future regulatory requirements.
This year’s introduction of quantitative reporting under the OECD’s Pillar Two framework represents a significant milestone for global tax transparency. IFRS now requires disclosure of Pillar Two’s impact in most territories, and more than half of the 956 companies reviewed have already built that disclosure into their latest financial statements. The signal is clear: a new era of transparency has arrived—raising the bar and setting the precedent for how multinational groups approach tax reporting and compliance.
For many multinationals, Pillar Two’s challenge is clear: compliance. It demands over 270 distinct data points for every constituent entity—multiplied across thousands in leading global organisations.5 Safe harbour rules hinge on qualifying CbCR data, making completeness and accuracy non-negotiable. Much of that information sits outside central systems, turning Pillar Two into one of the most complex compliance exercises companies have faced—and piling pressure onto tax functions already stretched for resource.
In response, many organisations are investing in automation and AI, not just to manage Pillar Two filings but to overhaul how compliance is approached more broadly. These tools can reduce manual effort, improve accuracy, and—crucially—turn Pillar Two data into insights that inform decision-making across tax and finance.
Ultimately, Pillar Two is more than a compliance requitement—it’s reshaping the tax landscape, accelerating the shift to integrated, tech-enabled tax functions. Its disclosures set a new transparency baseline, giving companies a chance to tighten governance, strengthen credibility, and build trust with governments.
Tax and sustainability reporting—Creating value through tax decisions
What did this year’s study find?
- The EU’s CSRD remains a demanding and evolving framework, and alignment to its tax-related requirements (including the minimum safeguard) is central to compliance.
- In our review, 125 companies (13.1% of the total) were assessed, based on their disclosures, as aligned with the tax minimum safeguard, up slightly from 117 last year.
- PwC’s analysis of 250 CSRD statements across Europe showed 6% of companies currently identify tax as a material sustainability topic. Most of these companies did so from a positive impact perspective, recognising that tax plays a critical role in social responsibility—directly influencing economic and social outcomes.
So, what is our takeaway?
- Tax is still under-represented in sustainability reporting, even though some companies are acknowledging its double materiality—both its impact on society and financially.
- Investors are increasingly recognising responsible tax practices and transparency as important measures when evaluating companies. According to PwC’s Global Investor Survey 2024, 18% of investors cite tax transparency and responsibility as one of the most important non-financial factors when evaluating companies, placing tax transparency almost at par with other sustainability topics such as health, safety, and well-being. This signals a growing expectation for tax to be treated as a sustainability topic. TTC can serve as a foundation for companies to meet those expectations.
- Limited recognition of tax within sustainability reporting could leave companies exposto regulatory gaps, investor scrutiny, and reputational challenge. Those that embed tax early are better positioned to build credibility and trust.
What can organisations do next?
- Engage with sustainability teams early: Bridge the current gap by ensuring that tax is considered in double-materiality assessments and review existing disclosures against frameworks such as Global Reporting Initiative (GRI) 207 to identify gaps.
- Go beyond compliance: Use this momentum to prepare for upcoming reporting requirements such as pCbCR and expand tax-related disclosures to better reflect the tax function’s purpose and strategic priorities.
- Leverage TTC: Evaluate how TTC can provide a more holistic perspective of your contributions to society and help meet investor and stakeholder expectations.
Tax continues to play an important role within broader sustainability reporting, particularly through the EU’s CSRD, which is still evolving. The February 2025 Omnibus package brought simplifications: narrower scope, delayed timelines for some, and fewer mandatory datapoints. Welcome relief—but not a free pass. CSRD remains complex, and alignment with the minimum tax safeguard is essential for compliance. In this year’s review, 125 companies (13.1% of those assessed) were aligned, up from 117 last year.6
Progress, yes. But tax is still underrepresented in sustainability reporting. In PwC’s review of 250 CSRD statements across Europe,7 only 6% identify tax as material. The reason is clear: tax is still framed as a financial or compliance issue, not recognised for its double materiality—societal and financial.
Investors, however, are taking tax into consideration when evaluating companies; responsible tax practices and tax transparency are increasingly seen as important measures. PwC’s Global Investor Survey found 45% of investors say they really lack enough quantitative tax information, with 43% also saying they lack sufficient qualitative information to the same degree.
The gap is clear: investors expect more than companies disclose. Sustainability reporting can close it—with TTC delivering hard numbers: decision‑useful tax data that complements sustainability frameworks and meets stakeholder expectations.
Public Country-by-Country reporting—A fragmented but fast-approaching reality
What did this year’s study find?
Public CbCR disclosures remain limited, with only 33 companies (3.5% of total reviewed) publishing full data, up slightly from 24 (2.7%) last year–despite new EU and Australian regulations taking effect from 2025, with a majority of first reports due in 2026.
124 companies disclosed partial CbCR data, down from 150 last year–reflecting both changes in indices and some European companies shifting from GRI standards to European Sustainability Reporting Standards (ESRS), which do not mandate tax or CbCR reporting.
Romania’s first year of mandatory pCbCR reporting provides an early glimpse of what lies ahead, with 74 reports reviewed showing wide variation in approach and confirming there is no ‘one-size-fits-all' model.
So, what is our takeaway?
The emerging pCbCR landscape is complex and fragmented, with varying deadlines, scopes, and data requirements across the EU Member States and Australia.
For companies preparing disclosures that meet overlapping but inconsistent requirements, this presents significant challenges.
Pillar Two safe harbour rules depend on accurate CbCR data, adding pressure on companies to ensure completeness and reliability.
Clear, consistent, and credible pCbCR will be essential to building trust with stakeholders and avoiding misinterpretation of data.
What can organisations do next?
Get data ready: Assess data availability, quality, and controls now to ensure accuracy across multiple pCbCR regimes.
Strengthen governance: Put in place robust oversight and control frameworks so that disclosures are consistent and reliable, even under differing jurisdictional requirements.
Prepare the narrative: Develop clear explanations to help stakeholders interpret the results and understand the company’s broader approach to tax.
pCbCR remains sparse—even with EU and Australian regulations taking effect in 2025, with first reports due in 2026.8 This year, just 33 companies (3.5%) published full CbCR, up from 24 (2.7%) last year.9 Another 124 shared partial data,10 down from 150.11 The drop reflects changes in the territories and indices reviewed and a shift by some European companies from GRI to ESRS, which has no dedicated tax or CbCR requirement.
The rollout of pCbCR regulation is already underway. Romania was the first EU Member State to implement the rules, requiring in-scope companies to report for financial years beginning on or after 1 January 2023. In a separate review of the first Romanian pCbCR reports, PwC located 74 reports from 123 in-scope entities, showing a wide range of approaches to disclosure. These early reports provide valuable insight into what lies ahead, while confirming that there is no ‘one-size-fits-all' approach.
Expect pCbCR to grow more complex—and more fragmented. In the EU, Member States have implemented the directive with different filing deadlines, data requirements, and approaches for aggregation and presentation. Australia adds another layer of complexity, with its own list of territories requiring disaggregated reporting and a mandatory 'approach to tax' statement disclosure. Companies subject to both regimes face a tough task. Disclosures must be accurate, consistent, and comparable across frameworks that don’t line up.
Companies that show firm governance over their tax data—and back it with clear, transparent narrative—will be better positioned to navigate an evolving regulatory landscape, build stakeholder credibility, and avoid misinterpretation. That is why pCbCR is not a box‑ticking exercise. It is a public benchmark of corporate trust.
Make sure you’re prepared for pCbCR with PwC’s 10 step strategy (PDF).
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Tax and sustainability
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Tax policy and administration
We help you make sense of how tax policy affects your business and facilitate effective communication with the policymakers and stakeholders involved
