According to the IRS announcement on its website, the competent authorities of the U.S. and Iceland have concluded an arrangement on the exchange of Country-by-Country Reports. The competent authority arrangement (CAA) for exchange of country-by-country reports is on the basis of a double tax convention (DTC). The agreement was signed on 5 May 2017.
Under the arrangement, the first fiscal year for which the U.S. and Iceland intend to exchange CbC reports is the fiscal year of MNE Groups commencing on or after January 1, 2016. The CbC report is intended to be exchanged by the Competent Authorities of the two countries as soon as possible and no later than 18 months after the last day of the fiscal year of the MNE Group to which the CbC report relates. CbC reports with respect to fiscal years of MNE Groups commencing on or after January 1, 2017 are intended to be exchanged as soon as possible and no later than 15 months after the last day of the fiscal year of the MNE Group to which the CbC report relates.
The Competent Authorities intend to exchange the CbC Reports automatically through a common schema in Extensible Markup Language (XML).
