CbC Competent Authority Agreement signed

31 countries have signed an agreement to share of Country-by-Country (CbC) reports produced by multinationals in their jurisdictions to other signatory jurisdictions in which the multinational group does business.

  • Enviado 29 enero 2016
  • Legislación aplicable Reino Unido , Unión Europea , Mundial
  • Tema Impuestos > Corporativo

The OECD has announced that 31 countries have signed a Multilateral Competent Authority Agreement (MCAA) for the automatic exchange of Country-by-Country (CbC) reports. The MCAA signals a major step forward at an international level to share tax information on the activities of multinational entities (MNEs), providing tax authorities with high level information to risk assess the activities of those MNEs.


The Organisation for Economic Co-operation and Development (OECD) BEPS Project included 15 Action Points to reform the international tax framework and ensure that profits are reported where economic activities are carried out and value added. The OECD released its final reports and recommendations on the BEPS Action Points in October 2016 and these were endorsed by G20 leaders in November 2015. Following endorsement of the BEPS measures, the focus has shifted to implementation and to designing a framework for monitoring BEPS.

Action Point 13 covered transfer pricing documentation requirements and the introduction of CbC reporting to increase transparency by MNEs. CbC reporting is designed to provide tax authorities with information, starting in some cases with accounts for the 2016 period, on where a company operates, the global allocation of income and taxes paid and other indicators of the location of economic activity within the MNE group. It will also cover information about which entities do business in a particular jurisdiction and the business activities each entity engages in. The information will be collected by the country of residence of the ultimate parent of the MNE group.


The MCAA signed by 31 jurisdictions on 27 January 2016 is the first of such agreements. The Agreement contains a commitment by the signatory jurisdictions to annually exchange on an automatic basis any CbC report received from a reporting MNE resident in that jurisdiction with all other tax authorities in other signatory jurisdictions in which one or more business units of the MNE are resident or subject to tax with respect to business carried out through a PE. (Though the MCAA does contain the option for a jurisdiction to be listed as a non-reciprocal jurisdiction, such that it will send but does not receive CbC reports.)

The MCAA also contains obligations on jurisdictions to notify other jurisdictions when there is reason to believe that a reporting entity resident in that other jurisdiction has made an incorrect or incomplete CbC report or other non-compliance with CbC reporting has occurred.

The first exchanges of information are expected to start in 2017/2018 and be based on information for the 2016 accounting period. In general, reports are to be exchanged as soon as possible and in any event no later than 15 months after the end of an accounting period.

For more information about the MCAA Country-By-Country Reporting, click here.

Signatory jurisdictions: 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 United Kingdom

BEPS microsite

All our materials on the OECD BEPS project are readily accessible on our BEPS microsite on elexica. These include further details of the project and the individual action points, including details of implementation in jurisdictions, together with links to various resources.

This document (and any information accessed through links in this document) is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document.