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U.S. Negotiating CbC Exchange Arrangement with Turkey — Orbitax Tax News & Alerts

According to an update to the IRS Country-by-Country Reporting Jurisdiction Status Table, the U.S. had begun negotiations for a competent authority arrangement on the exchange of Country-by-Country (CbC) Reports with Turkey, which must be finalized and signed before becoming operative (effective). Once finalized and signed, the exchange arrangement will likely apply with respect to reporting fiscal years beginning on or after 1 January 2019 given that Turkey's CbC reporting requirements apply for reporting fiscal years beginning on or after that date. In this respect, the IRS update notes that Turkey has provided an extension for the initial submission of CbC reports to 26 February 2021, which could be read as an indication of the IRS's intent to complete negotiations in time so that U.S. MNEs would not be required to file locally in Turkey.