Friday, September 13, 2019
The OECD has revealed that the British Virgin Islands and Seychelles have newly signed up to its Multilateral Competent Authorities Agreement (MCAA) on country-by-country reporting.
According to a new update from the OECD, the BVI signed up to the pact on July 7, 2019, while Seychelles joined the agreement from July 9, 2019.
CbC Reporting is one of the four minimum standards of the BEPS Project. The CbC report requires the disclosure by large multinational groups of some basic items of financial data in each country where the MNE is organized. Information collected includes the amount of revenue reported, profit before income tax, and income tax paid and accrued, as well as the stated capital, accumulated earnings, number of employees, and tangible assets, broken down by jurisdiction.
A CbC report is typically filed in the jurisdiction in which the parent is located. To remove the need for multinationals to file a report in each jurisdiction in which they do business, the OECD developed the Multilateral Competent Authority Agreement on the Exchange of CbC Reports, which enables the automatic exchange of CbC reports. Where such an arrangement is in place between a multinational's home state and a foreign jurisdiction in which it does business, a multinational need not also file a CbC report in that other state.
Membership of the agreement enables the two territories to automatically exchange country-by-country reports with other jurisdictions. According to the OECD's August 30, 2019, update, a total of 82 territories have now signed up to automatically exchange CbC reports.