On 22 December 2020, the Inland Revenue Department (IRD) of Sri Lanka has published a notice related to the filing of Country-by-Country (CbC) reports and notifications. According to the notice, the ultimate parent company or its surrogate parent entity may furnish along with the CbC notification the list of its constituent entities of the MNE group, instead of each constituent entity furnishing the notification.

A prescribed format is also provided in the notice. The CbC Notification should be submitted by e-mail to itp@ird.gov.lk or by Post to The Commissioner, Secretariat Branch, Department of Inland Revenue, Chittampalam A Gardiner Mawatha, Colombo 02.

The notice also clarifies changes in the CbC reporting requirements, as following:

  • The requirements apply from reporting fiscal years beginning on or after 1 April 2020; and
  • MNE groups with consolidated group revenue below EUR 750 million are not required to file the CbC notification or CbC report.

MNE Group whose Reporting Fiscal Year begins on or after 01 April 2020, it is provided:

  • The filing of the CbC notification was due by 31 December 2020, but due to COVID-19, this has been extended to 31 January 2021; and
  • The filing of the first CbC report is due by 31 March 2022.

MNE Group whose Reporting Fiscal Year begins on or before 31 March 2020 is not required to file either of CbC notification or CbC Report as its requirement commences from the fiscal year beginning on 01 January 2021.