The Organisation for Economic Co-operation and Development (OECD) has provided further guidance on the implementation of country-by-country (CbC) reporting under its framework on base erosion and profit shifting (BEPS) initiative.
The new guidance was released to give certainty to tax administrations and multinational enterprise groups on the implementation on CbC reporting according to BEPS Action 13.
As part of Action 13, large multinationals have to provide an annual report, the CbC report, breaking down key elements of the financial statements by jurisdiction.
The original BEPS Action 13 report laid out the template for multinational enterprises to report annually and for each tax jurisdiction in which they do business.
Earlier this year in May, the OECD announced that more than 700 automatic exchange relationships have now been established among jurisdictions committed to exchanging CbC reports in the 2018, including EU member states.
Fifty-seven countries have committed to CbC reporting, under three agreement models designed for jurisdictions to mutually agree the scope of the automatic exchange of information.
