The OECD announced that 31 countries signed the Multilateral Competent Authority Agreement for the automatic exchange of Country-by-Country (CbC) reports (MCAA) during a signing ceremony held 27 January 2016. Under the MCAA, signatories may exchange CbC reports with other signatories if they have CbC reporting requirements in place and are a party to the OECD-Council of Europe Convention on Mutual Administrative Assistance in Tax Matters.
Meeting those conditions, however, does not mean any signatory will automatically exchange CbC reports with another. This is because when signing the CbC MCAA, the signatory must address to the OECD Secretariat either (i) a list of those other signatories it commits to exchange with or (ii) a notification that it commits to exchange with all other signatories. A signatory may also elect to be classified as a "non-reciprocal jurisdiction", which effectively means it is not entitled to receive CbC reports from other signatories. The OECD will make publically available the status of the individual signatories concerning commitment to exchange with specified countries, all countries, or be classified as non-reciprocal.
The countries that signed on 27 January include:
Australia, Austria, Belgium, Chile, Costa Rica, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Japan, Liechtenstein, Luxembourg, Malaysia, Mexico, Netherlands, Nigeria, Norway, Poland, Portugal, Slovak Republic, Slovenia, South Africa, Spain, Sweden, Switzerland and the United Kingdom.
Of the 31 countries, Australia, Denmark, France, Ireland, Italy, Mexico, the Netherlands, Poland, Spain and the United Kingdom have already implemented CbC legislation, while the others have already proposed legislation or are expected to in the near future.
Click the following link for the OECD press release.
We’re here to answer any questions you have about the Orbitax products and services.
We’re committed to providing high value, low cost tax research and management solutions.
Our Twitter account is where you can find latest information, news updates, offers and lots more.