What is BEPS reporting?

What is BEPS reporting?

Background. CbC reporting is one of the four minimum standards of the BEPS project, and requires tax administrations to collect and share detailed information on all large multinational entities (MNEs) doing business in their jurisdiction.

What is CbC reporting?

What is CbCR and what is a CbC report? A CbC report provides local tax authorities visibility to revenue, income, tax paid and accrued, employment, capital, retained earnings, tangible assets and activities.

What are country-by-country CbC report?

What is CbCR and what is a CbC report? Country-by-Country Reporting (CbCR) is part of the OECD’s Base Erosion and Profit Shifting (BEPS) Action Plan 13. In essence, large multinationals have to provide an annual return, the CbC report, that breaks down key elements of the financial statements by jurisdiction.

What is the purpose of BEPS?

Base erosion and profit shifting (BEPS) refers to tax planning strategies used by multinational enterprises that exploit gaps and mismatches in tax rules to avoid paying tax.

Who is subject to CbC reporting?

The CbC reporting affects Significant Global Entities (SGE). SGE are multinational groups with annual global income equivalent to AU$1 billion or more. If your company is part of a multinational group with an annual global income of less than AU$ 1 billion, you are not required to complete CbC reporting requirements.

Who needs to do CbC reporting?

Entities with annual global revenue of $1 billion or more must provide a statement to the Commissioner. A statement may be required to include one or more of a CbC report, master file and local file. Entities with annual global revenue under $1 billion do not need to provide such a statement.

What is MNE group?

The Consolidated Financial Statements are the financial statements of an MNE group in which the assets, liabilities, income, expenses and cash flows of the ultimate parent entity and the Constituent Entities are presented as those of a single economic entity.

Who does BEPS apply to?

Domestic tax base erosion and profit shifting (BEPS) due to multinational enterprises exploiting gaps and mismatches between different countries’ tax systems affects all countries. Developing countries’ higher reliance on corporate income tax means they suffer from BEPS disproportionately.

What is BEPS accounting?

Base erosion and profit shifting (BEPS) refers to corporate tax planning strategies used by multinationals to “shift” profits from higher-tax jurisdictions to lower-tax jurisdictions, thus “eroding” the “tax-base” of the higher-tax jurisdictions.

What is CbC OECD?

Country-by-Country (CbC) reporting pursuant to the BEPS Action 13 Report is one of the four BEPS minimum standards. It requires multinational enterprises (MNEs) to report key information on their activities and income annually and for each tax jurisdiction in which they do business.

What is the BEPS action 13 (CBC) report?

The BEPS Action 13 report (Transfer Pricing Documentation and Country-by-Country Reporting) provides a template for multinational enterprises (MNEs) to report annually and for each tax jurisdiction in which they do business the information set out therein. This report is called the Country-by-Country (CbC) Report.

Is 42 BEPS action 13 on country-by-country reporting?

3 Yes ☐ / No ☐ Your comments: 42 BEPS ACTION 13 ON COUNTRY-BY-COUNTRY REPORTING – PEER REVIEW DOCUMENTS © OECD 2020 Effective Implementation 6.

What is the OECD guidance on BEPS country-by-country reporting?

See OECD Guidance on the Implementation of Country-by-Country Reporting on BEPS Action 13 issued in June 2016. 2 A “local filing” obligation means an obligation to file or otherwise make available a CbC report imposed on a Constituent Entity other than the Ultimate Parent Entity of an MNE Group.

What is the action 13 report?

In order to ensure consistency in the implementation of CbC reporting across a large number of jurisdictions, the Action 13 Report contains a standard template in accordance with which the CbC report must be prepared. 2.