Country-by-Country Reporting Obligations

UK legislation has been amended to adopt country-country (CbC) reporting obligations following the OECD’s review into Base Erosion and Profit Shifting (BEPS).

What is CbC?

Multinational enterprises (MNEs) are now required to annually report key financial information for each jurisdiction in which they do business. The aim is to increase the tax transparency of MNEs. Jurisdiction must report information including revenue, profit, income tax, total employment, capital, retained earnings and tangible assets.

When will the first report be due?

The UK rules apply to accounting periods commencing on/after 1 January 2016. The CbC report is due 12 months following the end of the accounting period. For example, entities with a December period end must report by 31 December 2016. The filing deadline would be 31 December 2017. HMRC will issue late filing penalties.