On 12 May 2016 six countries including China and India signed the multilateral competent authority agreement for the exchange of country by country (CbC) reports. The other countries signing the agreement on 12 May were Canada, Iceland, Israel and New Zealand. So far 39 countries have signed the competent authority agreement.
The agreement is designed to allow the signatories to automatically exchange CbC reports on a bilateral basis. The CbC reports to be submitted by parent companies of multinational groups will contain information showing which entities do business in each jurisdiction and the profits, tax and other business information on a country by country basis.
The OECD’s Forum on Tax Administration is currently meeting to discuss key issues including the way forward on implementation of the reports on base erosion and profit shifting (BEPS).
