On 28 May 2019, the Saudi Arabian Cabinet sanctioned the signature of the Multilateral Competent Authority Agreement on the Exchange of Country-by-Country Reports (CbC MCAA).
Saudi Arabia presented CbC reporting requirements, including standard secondary local filing requirements for non-parent constituent entities resident in Saudi Arabia, for the year ending on or after 31 December 2018. It is not clear how the local filling requirements will be implemented, but the signing of the CbC MCAA should reduce the requirements of most foreign multinational enterprises. Similarly, CbC MCAA needs to reduce local filing requirements for Saudi Arabian multinational enterprises in most foreign jurisdictions. The Mutual Assistance Convention is the basis for exchange in accordance with the MCAA CbC and has been in effect for Saudi Arabia since April 1, 2016.
