As published on news.bloomgbertax.com, Tuesday November 5, 2019.
The treatment of dividends received and guidelines for when subsidiaries must submit reports where they’re located rather than where the parent company is located are the latest pieces of tax guidance from the Organization for Economic Cooperation and Development.
The OECD’s Nov. 5 guidance is meant to help multinational companies submit accurate, detailed information on their worldwide business activities to tax authorities.
The OECD also published a summary of common errors multinationals have made when preparing the tax reports to help companies avoid making them.
Country-by-country reports are part of the OECD’s project to stop companies from shifting profits to low- or no-tax jurisdictions. The reports give tax authorities a clearer picture of multinationals’ business activities, including taxes paid, profits made, and headcount per country of operation.
Governments first started exchanging the reports with one another in June 2018.