Summary – OECD releases guidance on the implementation of country-by-country reporting

Following the endorsement of the BEPS Package by G20 Leaders in November, the focus has now shifted to ensuring a consistent implementation, including the new transfer pricing reporting standards developed under Action 13 of the BEPS Action Plan.

Yesterday the OECD released further guidance on the implementation of CbC reporting on the following issues:


  • Transitional filing options for MNEs that voluntarily file in the Parent jurisdiction;

In practice, there will be differences in timing of the implementation of CbC reporting legislation between countries. In case a jurisdictions will not be able to implement the new legislation with respect to fiscal periods commencing from 1 January 2016, they may accommodate voluntary filing for Ultimate Parent Entities resident in their jurisdiction. This would allow the Ultimate Parent Entities of an MNE Group resident in those jurisdictions to voluntarily file their CbC report for the fiscal periods commencing on or from 1 January 2016 in their jurisdiction of tax residence.

Countries that confirmed the voluntary filing are Japan, Switzerland (draft legislation under consultation) and the United States.


  • The application of CbC reporting to investment funds;

As stated in the Action 13 Report, there is no general exemption for investment funds. Therefore the governing principle to determine an MNE Group is to follow the accounting consolidation rules.


  • The application of CbC reporting to partnerships which are transparent and have no tax residency anywhere;

For the purpose of completing the CbC report, if a partnership is not tax resident in any jurisdiction then the partnership’s items, to the extent not attributable to a permanent establishment, should be included in the CbC report as stateless entities.


  • The impact of exchange rate fluctuations on the agreed EUR 750 million filing threshold for MNE groups:

Provided that the jurisdiction of the Ultimate Parent Entity has implemented a reporting threshold that is a near equivalent of EUR 750 million in domestic currency as it was at January 2015, an MNE Group that complies with this local threshold should not be exposed to local filing in any other jurisdiction that is using a threshold denominated in a different currency.


Please click for the official document as published by the OECD on June 29, 2016


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