FAQs

Service:

Simply share your input data in an Excel file, and we will prepare the CbC Report in XML format, pre-validate with the tax regulator and deliver to you the validated XML output file for your submission with the tax regulator.


Software:

Purchase our easy-to-use DataTracks CbCR software subscription and seamlessly prepare your CbC Report in-house. You will receive a login to our cloud-based application that is hosted on secured servers with tier-3 hosting arrangements. Our organisation is certified with ISO 9001:2015 for Quality standards and ISO 27001:2013 for Information Security standards.


Service Software
Time Efforts None Medium
Cost £ £ £
Test Filing DataTracks You
Filing with Regulator You You

Country-by-Country Reporting or CbCR is part of the 15 action plans prescribed under the BEPS (Base Erosion Profit Shifting), which is adopted by the OECD and G20 countries. This action plan is about the transfer pricing requirement which includes a Master file, a Local file and most notably the County-by-County Report. The main objective of the CbC report is to break down the key elements of the financial statements by jurisdiction.

OECD has adopted XML file format. However the Tax regulators of respective countries would decide on the output format to be filed in most OECD countries, Tax regulators has adopted XML file format for filing CbC Report.

CbCR applies to multinational enterprises (MNEs) with a combined revenue of €750 million or more (or equivalent amount in other currencies as prescribed by the respective countries’ Tax regulators).

As at October 2017, the reporting requirement is for fiscal years starting on or after 1st January, 2016.

Yes, MNEs must send a notification to their respective tax authorities. However, to find the exact status of reporting notification, please reach out to your Tax authority for more information.

CbCR is gradually being mandated across the globe and is decided by the Country’s Tax Authority. In the UK, HMRC has mandated CbCR and is accepting voluntary filing till the Dec 2017.

CbC Reports have to be filed by the MNE with their local Tax authority where they are headquartered. The filed data will be exchanged with other tax regulators (who are part of OECD) across the globe.

To facilitate Tax regulators with visibility to revenue, income, tax paid and accrued employment, capital, retained earnings, tangible assets and other activities of MNEs. CbC Reports in XML also facilitates computer readability and easy exchange of data between Tax regulators worldwide.

MNEs can get in touch with the respective tax authority regarding this reporting requirement and can prepare the data well in advance to avoid last minute filling and facing monetary penalties. Companies like DataTracks can help MNEs identify if they fall under the CbC Reporting requirement and if so, help them with this report preparation.

MNEs might face a challenge in consolidating all tax-related financial information accurately from different entities across the globe. They might also face validation issues with the CbCR XML file if they are not familiar with this file format.

MNEs should act immediately and start looking out for comprehensive CbCR solutions provider. MNEs should also check with their Tax regulator if they are required to file CbC Report, in which file format and by what date.

You can find the necessary guidance about Country-by-Country Reporting regulation on the OECD website. Please note that adopting the OECD prescribed templates and guidance are in the hands of individual country’s tax authority regime.

DataTracks can provide comprehensive CbCR solutions catering to MNEs’ needs by offering both CbCR service as well as CbCR cloud-based software solution.