At least once a year, public companies have to disclose the amount of cash taxes they pay. They must also provide their total pretax net income for U.S. and foreign operations, as well as their tax expense or benefit. But businesses don’t have to break out their tax and profit data by country. Companies must also disclose their effective tax rate, or the ratio between their tax expense and their pretax income.

Under Wednesday’s proposal, both public and private companies would have to break out the income taxes paid to authorities at the federal, state and foreign levels for the year to date in both their quarterly and annual financial reports. If a particular jurisdiction represented more than 5% of these taxes for the year to date, businesses would need to specify that amount in their financial reports.

The proposal would also require public companies to share more detail on how they reconcile their domestic statutory rate with the rate they actually paid. Businesses would also have to present a table showing how categories such as state and local income taxes, foreign taxes, tax credits and the enactment of new tax laws contribute to the difference between the two rates—the statutory rate and the actual one—by providing the percentages and dollar amounts.

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