Share with your friends

New OECD Guidance Clarifies CbC Reporting Rules

New OECD Guidance Clarifies CbC Reporting Rules

OECD announces clarification around CbC reports filed under local filing rules


Related content

A new clarification is included in updated OECD guidance on country-by-country reporting (CbC), published on December 23, 2019. The new guidance explains that the automatic exchange of CbC reports filed under local filing rules is not intended under the BEPS Action 13 minimum standard.

The OECD has also posted a helpful summary of CbC reporting requirements listed by jurisdiction on its website, to help multinational entities comply with various notification requirements.

CbC reporting exception under local filing rules

According to the new guidance, the minimum standard does not anticipate the automatic exchange of CbC reports filed under local filing rules, as this could result in the exchange and cross-exchange of multiple CbC reports on the same multinational entity group. The guidance emphasizes that such an exchange could potentially overwhelm and confuse tax administrations, with no additional benefit from the perspective of a multinational entity's group's tax risk assessment.

The guidance notes that, under the BEPS Action 13 minimum standard, jurisdictions must require ultimate parent entities of MNE groups to file CbC reports. Jurisdictions must also automatically exchange this information with other jurisdictions in which the MNE group operates, subject to conditions. The guidance comments that the minimum standard also anticipates the automatic exchange of a CbC report filed by a "surrogate parent entity", which is a constituent entity appointed by an MNE as a sole substitute for the ultimate parent entity to file a Cbc report on behalf of the MNE where certain conditions are met.

Summary of CbC reporting requirements

The OECD has also published a summary of CbC reporting notification requirements for certain jurisdictions, which is available on the OECD website. This summary is intended to help multinational groups comply with notification requirements in different jurisdictions where they have constituent entities.


CbC reports contain valuable information on the global allocation of income, taxes paid and the location of economic activity among tax jurisdictions in which a multinational group operates. This information may be used by tax authorities in high-level transfer pricing risk assessment, assessment of other BEPS-related risks, and economic and statistical analysis.

For more information, contact your KPMG advisor.

Information is current to January 7, 2020. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500

© 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit

Connect with us


Want to do business with KPMG?


loading image Request for proposal

Stay up to date with what matters to you

Gain access to personalized content based on your interests by signing up today

Sign up today