United Kingdom


  • Service: Tax
  • Type: Business and industry issue
  • Date: 08/11/2013

Country by Country Reporting 

The Organisation for Economic Co-Operation and Development (OECD)’s proposal for introducing a mandatory Country by Country Report (CbC Report) to be submitted to tax authorities is now a reality.  On 6 February 2015 the OECD issued updated guidance ( PDF 533.79 KB) on the implementation of their proposals under Action 13 of the Base Erosion and Profit Shifting (BEPS) project.


The guidance gives further detail on 1) which multinational groups (MNEs) will be required to file the CbC Report, 2) when the reporting requirement will start, 3) conditions for obtaining and using the CbC Report and 4) the framework for government to government exchange mechanisms. 

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OECD CbyCR  Report


The latest guidance issued on 6 February 2015 confirms that reporting will commence for accounting periods starting on or after 1 January 2016.  Filing to the parent country tax authority will be due within 12 months of the group’s financial year end, so the first filings will be due by 31 December 2017. 

There will be an exemption for multinationals with consolidated group revenue of less than €750m (or equivalent in local currency) in the prior financial year.  Group’s will need to monitor this threshold to assess if and when they come within scope. 


The members of the OECD and G20 have committed to bring the rules into local legislation and to develop a network of competent authority agreements to facilitate automatic sharing of the CbC Reports amongst relevant tax authorities. There will be conditions around confidentiality, consistency and use. The UK Government announced their intention to implement the OECD proposals at the Autumn Statement in November 2014 (external link).

Further details of the government to government sharing mechanism for the CbC Report are expected to be developed by April 2015. The February 2015 guidance indicates that the transfer pricing Master and Local files should be filed locally with each relevant tax authority.

As a reminder the final template for the CbC Report and guidance was published on 16 September 2014 and details can be found on the OECD website (external link).


Companies should now be considering their strategy to data gathering and reporting. There is flexibility in the sources of data and the choice of group or local GAAP and groups will need to assess which data sources are the most appropriate to get the balance right between managing the compliance burden and providing the most accurate view of their tax position and value chain.


In our experience given the time it will take to assess the requirements, determine the most appropriate data gathering approach and implement new processes and potentially new technologies, companies should now start to prepare.


There are a number of complexities to consider, including determining the relevant entities in scope, interpreting the OECD guidance in key areas such as definitions of revenue and corporate income tax, gathering data consistently and accurately for each country/entity, and aligning the CbCR template with the new Master File and Local File. Find out how we can help.

Other CbyCR  requirements


The OECD CbC Report is not the only country by country reporting requirement. Our briefing document summarises the various other mandatory reporting requirements affecting companies in certain specific sectors. Companies in these sectors will need to comply with these regulations plus the OECD CbC Report so will need to assess how to gather data efficiently to meet all relevant regulations. There are some differences in the definitions and requirements and companies will want to assess how to articulate the reason for any differences between these reports and the CbC Report as they will all be available to tax authorities.


In particular, the UK government has announced it intends to implement Chapter 10 of the EU Accounting Directive for Extractive industries for financial years commencing on or after 1 January 2015. Companies that fall within the scope of this directive will need to consider the draft legislation and start to prepare.


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Julie Hughff

Julie Hughff


KPMG in the UK

020 7311 3287

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Aron Mayer

Aron Mayer


KPMG in the UK

020 7311 3262

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