A summary of notification requirements in Inclusive Framework member jurisdictions has also been published.
Updated Country-by-Country (CbC) reporting guidance published before Christmas by the OECD confirms that automatic exchange of CbC reports filed under local filing rules is not intended under the BEPS Action 13 minimum standard. A useful summary of local notification requirements has also been published on the OECD website.
In November 2019 the OECD released additional interpretative guidance on the implementation and operation of CbC reporting to give greater certainty to tax administrations and multinational enterprise groups (MNE Groups). In addition, a summary of common errors made by MNE Groups in preparing CbC reports was also posted on the OECD website.
On 23 December 2019, the OECD published another update to its guidance. The only new item added was to confirm that the automatic exchange of CbC reports filed under local filing rules is not intended under the BEPS Action 13 minimum standard. The OECD notes in the revised guidance that in this circumstance automatic exchanges would be inconsistent with the scope of a jurisdiction’s commitment to automatically exchange CbC reports and that “the automatic exchange of these CbC reports could result in the exchange and cross-exchange of multiple CbC reports on the same MNE group…..which could potentially overwhelm and confuse tax administrations, with no additional benefit from the perspective of an MNE group’s tax risk assessment.”
The OECD will continue to update this with any further guidance that may be agreed.
In addition, the OECD has published a summary of CbC reporting notification requirements in Inclusive Framework member jurisdictions on its website. This is a useful summary intended to assist MNE Groups in complying with notification requirements in different jurisdictions where they have constituent entities.
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