PHOENIX - - The Internal Revenue Service recently announced the launch of Country-by-Country Reporting pages on irs.gov. These pages provide background information on Country-by-Country Reporting, frequently asked questions and other helpful resources, including a list of jurisdictions that have concluded Competent Authority Arrangements with the United States.
Country-by-Country (CbC) Reporting is part of Action 13 of the Organization for Economic Cooperation and Development's Base Erosion and Profit Shifting project, which is intended to enhance transparency for tax administrations by providing them with information to conduct high-level transfer pricing risk assessments.
As part of the United States' CbC Reporting, U.S. parent entities of multinational enterprise (MNE) groups with $850 million or more of revenue in the relevant preceding annual reporting period will file Form 8975 and Schedules A (Form 8975) (i.e. the "CbC Report") with their annual income tax return. The CbC Reporting web pages contain helpful information and links to Guidance and Resources for U.S. MNE groups on CbC Reporting, including the final regulations, Rev. Proc. 2017-23 on filing for early reporting periods, and the forms and instructions.
The U.S. Competent Authority intends to enter into bilateral Competent Authority Arrangements (CAAs) for the automatic exchange of CbC Reporting information with Competent Authorities in Inclusive Framework jurisdictions with which the U.S. has an income tax treaty or tax information exchange agreement that allows for the automatic exchange of information provided the United States determines that the jurisdiction has in place appropriate safeguards with respect to confidentiality and use of the information exchanged. A U.S. MNE's CbC report will be exchanged pursuant to these CAAs if the U.S. MNE group has a constituent entity in the foreign jurisdiction.
The CbC Reporting website provides an up-to-date Country-by-Country Reporting Jurisdiction Status Table listing the CAAs that have been signed for CbC Reporting. Where jurisdictions agree that the text of a CAA can be made public, links to the text are included in the Table.
In addition, the CbC Reporting pages also provide:
- A list of CbC Reporting frequently asked questions (FAQs) and a link that allows for the submission of comments and questions to the IRS CbC Reporting Mailbox (mailto:email@example.com). The IRS will review comments and questions submitted and make updates to the CbC Reporting FAQs as appropriate;
- A link to sign up for the CbC Reporting Newsletter, which will be sent out periodically with CbC Reporting-related updates and information; and
- Instructions to Report Unauthorized Use for suspected unauthorized disclosure or misuse of information exchanged with a treaty/TIEA partner.