Multinational companies headquartered in OECD and G20 countries, with consolidated revenues of €750m+ (or local currency equivalent), will be required to submit a Country by Country Report (CbyC Report) to their parent company tax authority, for periods starting on or after 1 January 2016. Multinationals operating in OECD/G20 countries and headquartered elsewhere are also likley to be in the scope of the rules.
The implementation framework will be further developed by April 2015. There will be mechanisms to facilitate sharing, including potentially local filing, if the parent country tax authority has not implemented the requirements locally.
Sourcing cash tax paid is not an easy task. Collating and reporting the data in the required format is also time consuming and a spreadsheet approach can carry risk of errors. We have configured our proprietary technology tool, KPMG LINK Country by Country Reporting, to assist with the data gathering and reporting.