CbCR establishes a standardized framework whereby globally-active corporate enterprises disclose key financial and operational data to tax authorities nationwide, with the information presented separately according to locational specifics so as to facilitate international cooperation against deleterious cross-border tax practices.
Key Features of Country-by-Country Reporting (CbCR)
- Multinational enterprise groups must report high-level country-wise aggregates covering revenue, profit and loss amounts, taxes accrued and paid, employee headcounts and other salient indicators
- Participating jurisdictions can access CbCR disclosures to inform transfer pricing risk screening and identification of potential base erosion and profit shifting dynamics requiring further review
- Through a common template, CbCR enhances tax transparency and aids compatible administration of tax codes across borders
Example of Country-by-Country Reporting (CbCR)
One multinational, upon submitting its CbCR filing, revealed income generation heavily concentrated in limited hub locations despite broader geographical dispersion of workforce presences—a configuration warranting deeper analysis by national tax authorities. Key Takeaways
By prescribing a standardized reporting framework, CbCR promotes collaboration between international tax administrations and helps addressdouble taxation or oversight gaps through comprehensive visibility into corporate operations worldwide. Adherence to CbCR rules remains imperative for businesses conducting cross-jurisdictional activities.