{{item.videoDuration}}
{{item.title}}
{{item.text}}
{{item.videoDuration}}
{{item.text}}
For Australian CEOs, tax transparency and sustainability reporting are moving up the agenda. This isn’t just about compliance—it’s about reputation and building greater trust and transparency with the broader community. Investors, employees and communities are paying closer attention to the taxes you pay and the story you tell about your contribution to society.
The landscape is shifting 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. Businesses are beginning to respond. PwC’s 2025 Global Tax Transparency study released in October 2025 shows 270 companies—30% of the 956 companies reviewed—disclosed some form of their Total Tax Contribution (TTC) publicly. With tax functions under pressure, TTC is increasingly being used as a strategic foundation—helping you 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, shaping your approach to tax transparency and TTC takes time. Benchmarking against your peers and competitors is a critical step and can help you pre-empt how your stakeholders may react to your published data.
At the same time, Pillar Two is creating new demands—requiring companies to collect and validate hundreds of new data points across global operations—stretching already lean tax teams. Australian CEOs are rethinking how their tax function operates and accelerating transformation plans in response.
Looking ahead, the differentiator will be how you strengthen governance and harness technology to manage Pillar Two and pCbCR data—turning a compliance exercise into a platform for reinvention.
These pressures aren’t unique to tax. Organisations are navigating regulatory fragmentation, rising data demands and the need to align compliance across multiple regimes. Viewed alongside climate risk and complex trade requirements, there are opportunities to enhance tax transparency and integrate tax sustainability reporting as part of a broader strategy for sustainable, long‑term growth.
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 (17.7 MB) 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.
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 2026.5 & 6
124 companies disclosed partial CbCR data7, down from 150 last year8–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 (652 KB) 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 in Australia and across the EU Member States.
With Australia’s first year of mandatory pCbCR due on 30 June 2026, Australian multinational companies should start preparing these disclosures and address any potential overlapping and inconsistent requirements, as this can present significant challenges for compliance.
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.
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.
Ensure you understand the reporting requirements under the pCbCR rules (435 KB) and start preparing with PwC’s 10 step strategy (283 KB) (PDF).
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. A data driven tax function is critical.
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.9 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 requirement—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.
Watch the interviews to gain insights from companies advancing transparency in their territories—and shaping the future of responsible tax behaviour across the globe.
{{filterContent.facetedTitle}}
{{contentList.loadingText}}
{{contentList.loadingText}}
Authors
Tax and sustainability
Viewing tax through a new lens to deliver sustainable outcomes
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