THE Inclusive Framework on BEPS has released two new documents to support the
global implementation of Country-by-Country (CbC) reporting (BEPS Action 13) -
Key details of jurisdictions' domestic legal frameworks for CbC reporting; and
Additional interpretive guidance on the CbC reporting standard.
These
documents provide essential information that will give certainty to tax
administrations and MNE Groups alike on implementation of CbC
reporting.
The details on jurisdictions' legal frameworks for CbC
reporting include the status of the legislation, first reporting periods,
availability of surrogate filing and voluntary filing, and whether local filing
can be required. This will be updated as Inclusive Framework members continue to
finalise their legal frameworks. Information will also be published in the
coming months as to the Qualifying Competent Authority Agreements (QCAA) being
put in place to facilitate the international exchange of CbC reports between tax
administrations.
The additional guidance relates to the case where a
notification to the tax administration may be required to identify the reporting
entity within a MNE Group (as provided in Article 3 of the Model Legislation in
the Action 13 Report). The guidance confirms that if such notifications are
required, jurisdictions have flexibility as to the due date for such
notifications. This may be particularly relevant during the transition period
where jurisdictions are still completing their implementation of CbC reporting,
as MNE Groups may not yet have the necessary information to submit their
notifications. The guidance also confirms that jurisdictions may wish to
consider other transitional relief for MNE Groups with respect to these
notifications, which would also be consistent with the minimum
standard.
Additional guidance will be published as necessary to support
the swift, consistent and global implementation of CbC reporting.
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