What is CbC Reporting

The BEPS (Base Erosion and Profit Shifting) Action Plan 13 describes the Country-by-Country Reporting (CbCR) framework and template for multinational companies in order to share the information with the tax authorities of all the countries in which they have the tax presence.

Many countries started adopting the OECD (Organization for Economic Co-operation and Development) prescribed BEPS Action Plan 13 Country-by-Country Reporting requirement. Tax authorities in these countries started working on the schema with the aim of having a greater transparency and the multinational enterprises are expected to deliver accurate reports.

Who should file

Multinational enterprises that have turnover more than 750 million euros (or equivalent in other currencies as specified by the respective countries’ tax regulators)

What should be filed

CbC Reporting template is divided into three tables Table 1 includes the overview of allocation of income, taxes and business activities by tax jurisdiction. Table 2 contains the list of all Constituent Entities of the MNE group included in each aggregation per tax jurisdiction. Table 3 includes additional information to be filed.

When to be filed

The filing will be on annual basis. The filing deadline differs from country to country. For example, in the UK, 31 December 2016 CbC Report needs to be filed by 31st December 2017 with HMRC.