On April 6, 2017 the OECD released an update of its Guidance on the Implementation of Country-by-Country Reporting, which was initially released on June 26, 2016 and that subsequently was updated on December 5, 2016.
New topics that are discussed in the updated guidance include a.o.:
· Issues relating to the definition of items reported in the template for the CbC report
o Definition of revenues
§ Should extraordinary income and gain from investment activities be included in the column "Revenues" in the CbC report?
o Definition of related parties
§ Which entities are considered to be related parties for purposes of reporting related party revenues?
· Issues relating to the entities to be reported in the CbC report
o Accounting principles/standards for determining the existence of and membership of a group
o Treatment of major shareholdings
§ Where there are minority interests held by unrelated parties in a Constituent Entity, should the previous year's consolidated group revenue include 100 percent of the Constituent Entity's revenue for the purpose of applying the 750 million Euro threshold (or near equivalent amount in local currency as of January 2015) to identify an Excluded MNE Group, or should the revenue be prorated? Further, should the entity's financial data that is included in the CbC report represent the full 100 percent or should it be pro-rated?
· Issues relating to the filing obligation for the CbC report
o Definition of total consolidated group revenue
§ For the purpose of determining whether an MNE Group is an Excluded MNE Group, are extraordinary income and gains from investment activities included in total consolidated group revenue?
· Issues relating to the sharing mechanism for the CbC report (EOI, surrogate filing and local filing)
o Transitional filing options for MNEs (“parent surrogate filing”)
§ Can MNE Groups with an Ultimate Parent Entity resident in a jurisdiction whose CbC reporting legal framework is in effect for Reporting Periods later than 1 January 2016 voluntarily file the CbC report for fiscal periods commencing on or from 1 January 2016 in that jurisdiction? What is the impact of such filing on local filing obligations in other jurisdictions?
The April 2017 updated of the report is only available in the English and French language. Unfortunately no updated German version of the report is available yet.
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