Country-by-country reporting
Country-by-country reporting is a regulatory requirement for multinational companies to provide detailed financial and operational data to local tax authorities for each country of operation, promoting transparency, compliance, and fair taxation. FinApt provides country-by-country reporting services to help multinational companies comply with regulatory requirements related to transfer pricing and international tax reporting.
Our Capabilities
FinApt has a team of experienced tax professionals with in-depth knowledge of international tax regulations, transfer pricing guidelines, and country-by-country reporting requirements. Our team possesses extensive experience in assisting multinational companies in preparing and submitting country-by-country reports to comply with local regulations and avoid penalties.
Customer-Centric Benefits
- Compliance with international tax regulations and transfer pricing guidelines
- Avoidance of penalties and potential legal disputes
- Enhanced transparency and credibility with tax authorities
- Streamlined reporting processes for better efficiency and accuracy
- Identification and mitigation of transfer pricing risks
- Expert guidance on complex tax reporting requirements.
Country-by-country reporting (CbCR) is a global tax transparency initiative introduced by the OECD (Organization for Economic Co-operation and Development). It requires multinational companies to provide detailed financial and operational data for each country they operate in to local tax authorities. This initiative aims to enhance tax compliance, transparency, and fair taxation.
Multinational enterprises (MNEs) with annual consolidated group revenue exceeding a certain threshold are typically required to submit Country-by-country reports. The threshold amount may vary by jurisdiction but is often set at €750 million or an equivalent amount in the local currency. It’s essential for MNEs to understand the specific requirements in each jurisdiction they operate in.
A Country-by-country report includes detailed financial and operational data, such as revenue, profit, taxes paid, employees, and tangible assets, for each jurisdiction where the multinational company has a presence. This data allows tax authorities to assess transfer pricing, profit allocation, and tax compliance, helping ensure multinational companies pay taxes where their economic activities occur.
- Please note that specific requirements and regulations may vary by country, so it's essential for MNEs to stay informed and compliant with the local laws and guidelines.
The Way We Work
- Detailed review of the company's financial and operational data
- Identification of relevant data points for country-by-country reporting
- Preparation of accurate and comprehensive country-by-country reports
- Timely submission of reports to local tax authorities
- Continuous monitoring of regulatory changes and updates
- Proactive identification and resolution of transfer pricing issues