OECD: BEPS guidance on CbC Reporting and country-specific information

Published on December 14, 2017

On 5th December 2016, two new documents have been realesed by the OECD in order to provide support regarding the global implementation of Country-by-Country Reporting, which is part of BEPS Action 13:

Key details of jurisdictions' domestic legal frameworks for CbC Reporting; and
Additional interpretive guidance on the CbC Reporting standard.

Main objective of the first document ”Key details of jurisdictions' domestic legal frameworks for CbC reporting” is to provide tax administrations and MNE Groups with essential information. The provided status of the legislation, the first reporting periods, the availability of surrogate filing and voluntary filing and whether local filing can be required, should serve as practical support during the first periods of CbC Reporting. As the members continue to finalise their CbC Reporting frameworks the table will be updated.

For further information see:
http://www.oecd.org/tax/automatic-exchange/country-specific-information-on-country-by-country-reporting-implementation.htm

The second document ”Guidance on the implementation of Country-by-Country Reporting” adresses several issues where questions of interpretation have arisen. In order to continue the consistent and swift implementation of CbC Reporting, the OECD will endeavour to provide common public guidance. The guidance covers the following issues

Transitional filing options for MNEs
Ultimate Parent Entities are allowed to voluntarily file the CbC reporting when they are resident in a jurisdiction, where CbC Reporting was not able to be implemented with respect to fiscal periods from 1st January 2016.

CbC Reporting notification requirements for MNE Groups during transitional phase
As it can be difficult to identify the appropriate reporting entity by the time of 31st December 2016, the OECD came to the conclusion that according to several reasons it would not be frustrating the policy intention of BEPS Action 13 to permit transitional relief.
The application of CbC Reporting to investment funds
As there does not exist a general exemption for investment funds, the governing principle to determine an MNE Group is to follow the accounting consolidation rules.
The application of CbC Reporting to partnerships
Items of partnerships that are not tax resident in any jurisdiction have to be considered in table 1 and table 2 for stateless entities, as to the extent the items are not attributable to a permanent establishment.
The impact of currency fluctuations on the agreed EUR 750 million filing threshold
The MNE Group is not exposed to filing in any other jurisdiction just because of exceeding the threshold in a different currency.

For further information see:
http://www.oecd.org/tax/beps/guidance-on-the-implementation-of-country-by-country-reporting-beps-action-13.htm