United Kingdom


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

Country by country reporting - overview and comparison of the initiatives 

The debate on the disclosure of information on tax is continuing to gain momentum, and is currently high on board-room agendas. The mining industry has been at the forefront of voluntary reporting and we've recently seen other sectors being proactive about tax transparency. This includes publishing reports setting out their tax contribution by country or region. As well as an increase in voluntary reporting, we are seeing a move to greater regulation on country by country reporting.

The latest development was the Discussion Draft on Transfer Pricing Documentation & Country by Country Reporting issued by the Organisation for Economic Co-operation and Development (OECD) on 30th January 2014. This is part of the Action Plan on Base Erosion and Profit Shifting (BEPS) and will impact on all multi-nationals regardless of size.

The draft template for Country by Country (CbyC) reporting is currently widely drafted. For example, it requires information on cross- border royalties, interest payments and service fees between all group companies as well as withholding taxes.

The consultation closed on 23rd February and many businesses, advisers, representative bodies, NGOs and interested parties have submitted comments to the OECD. The 133 responses are published on the OECD website.


The next phase of the process is a series of meetings of the OECD working party on 24th March with panels made up of NGO’s, advisers and business to be followed by a public consultation in May. KPMG will be attending the meeting on 24th March. It will be important for businesses to continue to contribute to the consultation process to inform the final design by providing practical insights on the challenges.


Data collection and reporting is now an area of focus and in our view companies should start preparing now so they can establish and then test a robust process for gathering data and to assess the data prior to submission. Find out here how we can help (PDF 380 KB).


Our briefing document has been updated to reflect the latest OECD proposals and the implementation of CRD IV in the UK.


A reminder of previous developments:


  • In 2010 the US passed the Dodd-Frank Act. Section 1504 of this act imposes country by country reporting rules on all Securities and Exchange Commission (SEC) registered companies in the extractive industries.

  • In July 2013, the EU Parliament agreed to adopt similar country by country reporting rules for extractives and the logging industry. An EU Accounting and Transparency Directive is in the process of being implemented.
  • The Capital Requirements Directive IV (CRD IV) - which the European Commission introduced in June 2013 - requires credit institutions and investment firms to report country by country data. This includes taxes, turnover, profits and employee numbers.


It's important for companies to closely monitor these developments, contribute to consultations and understand how the provisions interact where relevant. Those also impacted by the EU Accounting and Transparency Directive, Dodd Frank Section 1504 or CRD IV will have multiple requirements to consider as part of their scoping and strategy.


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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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