Country-by-country reporting (CbCR) is a tax transparency standard that requires multinational enterprises (MNEs) to disclose financial information — such as global income, profit, taxes paid, and economic activity per jurisdiction — to global tax authorities, who in turn:
- Conduct high-level transfer pricing risk assessments
- Identify base erosion or profit-shifting (BEPS) risks
- Flag mismatches where jurisdictions generate high profits but have minimal tangible assets or employees
From Corporate Regulatory Reporting, you can prepare CbCR filings for the Australian Taxation Office (ATO) and European Commission (EC).
Step 1. Start report
Note: Before you start a report, a Workspace Owner must first set up its type to specify its agency and form. To learn more, view Set up Corporate Regulatory Reporting.
To create a CbCR filing:
- From Corporate Regulatory Reporting, select Reports.
- For the applicable report type, click Add forms to set up the forms for the entities included in the report.
- To begin to prepare the forms' responses, click Start report to specify the report type as well as it start and due dates and imported source files.
Step 2. Choose aggregation approach
Before you prepare data for CbCR, determine whether to aggregate data as a partial or full breakdown.
- Partial breakdown creates a separate line item for each global jurisdiction required by the tax authority, and aggregates all remaining jurisdictions with an entity into a Rest of World (RoW) line item.
- Full breakdown creates a separate line item for each country with an entity, and aggregates your entities' financial data within their respective country's line item.
From the CbCR form, choose the applicable aggregation approach for its report.
Step 3. Import or prepare data
To prepare the forms' responses, you can:
- Import source files to automatically populate fields with data from another application
- Manually prepare responses through direct entry or data collection tasks
To help automate data collection, you can import data for a report — such as from your Enterprise Resource Planning (ERP) system or another source — from Source data.
When you import a source file, you specify its report and map its data to the respective fields of the forms. To learn more, view Import source data for Corporate Regulatory Reporting.
Note: Imported data populates the respective fields of your reports as-is. Perform any transformation of the source data – such as to convert date formats or round large amounts to thousands — before you import.
Tip: From Reports, you can view how many required fields of each form need a response. When all required fields have responses, the form's status updates to Ready.
Step 4. File with tax authority
When a form is Ready, you can generate the files necessary for submission with the tax authority.
Note: The ability to generate PDF, XML, or XHTML files of CbCR forms is coming soon. Stay tuned!
- To generate a portable document file (PDF) of the form – such as for internal review — select Generate PDF from its Actions in Reports, then click Download filing PDF.
- To submit a form to the ATO or EC, select Generate submission XML or Generate submission XHTML — respectively — from Actions, then click Download submission XML or Generate submission XHTML to export the applicable file for the tax authority.
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When you receive receipt of your submission from the tax authority, select Record receipt from the report's menu in Reports to upload it as confirmation of the filing.
To learn more, view Manage reports with Corporate Regulatory Reporting.