The Organisation for Economic Cooperation and Development (OECD) today announced that Bermuda signed the multilateral competent authority agreement for the automatic exchange of country-by-country (CbC) reports, thereby putting into place the automatic exchange framework as envisioned by the base erosion and profit shifting (BEPS) project Action 13.
As explained in today’s OECD release, under this agreement, tax administrations in countries where a company operates will receive aggregate information annually—starting with 2016 accounts—relating to the global allocation of income and taxes paid; other indicators of the location of economic activity within a multinational enterprise group; and information about which entities do business in a particular jurisdiction and the business activities of each entity. The information will be collected by the country of residence of the parent of the multinational entity group, and will then be exchanged in accordance with the agreements—now signed by Bermuda. The initial exchanges will start in 2017-2018 on 2016 information.
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