What is Country-by-Country Reporting (CbCR)?
Country-by-Country Reporting (CbCR) is a form of reporting by multinational enterprises (MNEs) initiated by the Organisation for Economic Co-operation and Development (OECD) in the Base Erosion and Profit Shifting (BEPS) Action 13 Report. In keeping with Singapore’s commitment to implement certain measures under the BEPS Project, Singapore-headquartered MNEs meeting certain conditions are required to prepare and file CbC Reports to IRAS for financial years (FYs) beginning on or after 1 Jan 2017.
Qualifying Competent Authority Agreement
On 21 June 2017, Singapore signed the
Multilateral Competent Authority Agreement on the exchange of CbC Reports (“MCAA CbCR”). The signing of the MCAA CbCR will enable Singapore to efficiently establish a wide network of exchange relationships for the automatic exchange of CbC Reports. For more details, the press release is available
here.
The MCAA CbCR is a multilateral framework agreement based on the
Convention on Mutual Administrative Assistance in Tax Matters. It provides a standardised and efficient mechanism to facilitate the automatic exchange of CbC Reports. Under the MCAA CbCR, signatories to the MCAA will automatically exchange CbC Reports with one another on a bilateral basis if both parties are mutually agreeable.
CbC reports submitted to IRAS will be provided to tax authorities of jurisdictions with which Singapore has established bilateral AEOI relationships under the MCAA. At the present time, not all the signatories to the MCAA have provided full or complete notifications of their intended exchange relationships. Some jurisdictions may also increase their exchange relationships over time. The list of exchange relationships below is therefore not the final list of exchange relationships that Singapore will enter into. For more information, please visit the
OECD webpage.
| Jurisdictions | Exchange relationship effective from |
|---|
| 1. Andorra | FY2018 |
| 2. Argentina | FY2017 |
| 3. Australia | FY2016 |
| 4. Austria | FY beginning 1 June 2016 |
| 5. Belgium | FY2016 |
| 6. Bermuda | FY2017 |
| 7. Brazil | FY2016 |
| 8. Bulgaria | FY2016 |
| 9. Canada | FY2017 |
| 10. Cayman Islands | FY2016 |
| 11. Chile | FY2017 |
| 12. China | FY2017 |
| 13. Colombia | FY2016 |
| 14. Costa Rica | FY2017 |
| 15. Croatia | FY2017 |
| 16. Curacao | FY2018 |
| 17. Cyprus | FY2017 |
| 18. Czech Republic | FY beginning 1 October 2016 |
| 19. Denmark | FY2016 |
| 20. Estonia | FY beginning 1 August 2016 |
| 21. Finland | FY2016 |
| 22. France | FY2016 |
| 23. Germany | FY2016 |
| 24. Greece | FY2016 |
| 25. Guernsey | FY2016 |
| 26. Hong Kong | FY2019 |
| 27. Hungary | FY2017 |
| 28. Iceland | FY2017 |
| 29. India | FY2016 |
| 30. Indonesia | FY beginning 1 May 2016 |
| 31. Ireland | FY2016 |
| 32. Isle of Man | FY2017 |
| 33. Italy | FY2016 |
| 34. Japan | FY2016 |
| 35. Jersey | FY2016 |
| 36. Korea | FY2016 |
| 37. Latvia | FY2017 |
| 38. Liechtenstein | FY2017 |
| 39. Lithuania | FY2016 |
| 40. Luxembourg | FY2016 |
| 41. Malaysia | FY2017 |
| 42. Malta | FY2016 |
| 43. Mauritius | FY2018 |
| 44. Mexico | FY2016 |
| 45. Monaco | FY2018 |
| 46. Netherlands | FY2016 |
| 47. New Zealand | FY2016 |
| 48. Nigeria | FY2018 |
| 49. Norway | FY2016 |
| 50. Pakistan | FY2016 |
| 51. Peru | FY2017 |
| 52. Poland | FY2016 |
| 53. Portugal | FY beginning 1 August 2016 |
| 54. Qatar | FY2017 |
| 55. Romania | FY2016 |
| 56. Russia | FY2017 |
| 57. San Marino | FY2019 |
| 58. Slovak Republic | FY2016 |
| 59. Slovenia | FY2016 |
| 60. South Africa | FY2016 |
| 61. Spain | FY2016 |
| 62. Sweden | FY2016 |
| 63. Switzerland | FY2018 |
| 64. Turks & Caicos Islands | To be advised |
| 65. United Kingdom | FY2016 |
| 66. Uruguay | FY2017 |
FY2016 means FY beginning 1 Jan 2016.
FY2017 means FY beginning 1 Jan 2017.
FY2018 means FY beginning 1 Jan 2018.
FY2019 means FY beginning 1 Jan 2019.
Updated as at 22 Aug 2019.
- What is the MCAA on CbC Reports?
The MCAA CbCR is a multilateral framework agreement that provides a standardised and efficient mechanism to facilitate the automatic exchange of CbC Reports. The legal basis for the MCAA CbCR rests in Article 6 of the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (“the Convention”) which provides for the Automatic Exchange of Information (“AEOI”) between parties to the Convention, where two parties subsequently agree to do so. More information on the MCAA CbCR, including the text of the MCAA, can be found on the OECD website. Please click
here for more information. - Why did Singapore sign the MCAA CbCR?
The signing of the MCAA CbCR reaffirms Singapore’s commitment to the international standards on tax cooperation. The MCAA CbCR has gained recognition internationally as a multilateral framework agreement for bilateral cooperation on AEOI of CbC Reports, with 57 signatories as at 1 June 2017.
Signing the MCAA CbCR will enable Singapore to efficiently establish a wide network of exchange relationships for the AEOI of CbC Reports. - Does signing the MCAA CbCR mean Singapore will exchange information with all MCAA signatories?
No, signing the MCAA CbCR does not mean Singapore will automatically exchange CbC Reports with all the signatories.
Under the MCAA, each signatory has ultimate control over exactly which exchange relationships it enters into and that each signatory’s standards on confidentiality, data protection and appropriate use of information will always apply. Singapore will establish bilateral AEOI relationships with fellow signatories that can meet the following principles:
- The AEOI partner has the safeguards needed to ensure the confidentiality of information exchanged and prevent its unauthorized use; and
- There is full reciprocity with the AEOI partner in terms of information exchanged. - How will taxpayers know which jurisdictions have an effective exchange relationship with Singapore under the MCAA CbCR?
The list of effective exchange relationships is available on the
OECD and IRAS website.
CbCR Filing Requirements
Who needs to file the CbC Report
The ultimate parent entity of the Singapore MNE group will be required to file a CbC Report for all entities in the group. The MNE group is required to submit the CbC Report if it meets all of the following conditions:
1. The ultimate parent entity of the MNE group is tax resident in Singapore;
2. Consolidated group revenue for the MNE group in the preceding financial year is at least S$1,125 million; and
3.The MNE group has subsidiaries or operations in at least one foreign jurisdiction.
When CbC Report should be submitted
CbC Report should be submitted to IRAS within 12 months from the end of the ultimate parent entity's financial year.
For the purposes of CbCR, FY 2018 refers to financial year beginning on or after 1 Jan 2018 but before 1 Jan 2019.
- Ultimate parent entity's FY ends in December:
The CbC Report relating to the financial period 1 Jan 2018 to 31 Dec 2018 (FY 2018) should be submitted to IRAS no later than 31 Dec 2019. - Ultimate parent entity's FY ends in March:
The CbC Report relating to the financial period 1 Apr 2018 to 31 Mar 2019 (FY 2018) should be submitted to IRAS no later than 31 Mar 2020.
Information to be Included in the CbC Report
A CbC Report of the MNE group will include information on the group’s global allocation of the income and taxes paid in different jurisdictions and other financial data. CbC Reports submitted to IRAS will be provided to tax authorities of jurisdictions with which Singapore has qualifying competent authority agreements for the automatic exchange of CbCR information. CbC Reports may be used by Singapore and other tax authorities in evaluating transfer pricing risks and other BEPS related risks.
CbC report must be submitted based on the format specified in Paragraph 5 of the CbCR e-Tax Guide. Please refer to the e-Tax Guide on Country-by-Country Reporting (712KB) for details on the report format and information to be submitted.
Notification of Filing Obligation
Each year, IRAS will issue notification letters to the Reporting
Entities on their obligation to file a CbC Report to IRAS for the preceding FY.
For example, IRAS will send the notification letters to the Reporting Entities
for FY 2018 CbC Report by 31 July 2019.
If you are required to file a CbC report for a FY based
on the conditions (in the paragraph on “CbCR Filing Requirements” above)
but have not received IRAS’ letter by 31 July of the following year, please
contact IRAS immediately via email to ct_transfer_pricing@iras.gov.sg.
Reporting Entities which are required to file a CbC
report must provide IRAS with the following information at least 3 months
before the filing deadline via email to ct_transfer_pricing@iras.gov.sg:
- Name and UEN
of the ultimate parent entity (i.e. Reporting Entity);
- Financial reporting period of the ultimate parent entity (DD/MM/YYYY to DD/MM/YYYY);
- Contact person’s name and contact number;
- Email of contact person (if different from that used to
provide your reply).
A Singapore constituent entity of a foreign MNE Group is not required to notify IRAS of the foreign Reporting Entity that will be filing a CbC report in the foreign jurisdiction.
How to Submit the CbC Report
Reporting Entities will need to have processes in place to collate and prepare the required data in accordance with the prevailing CbCR XML Schema set out in the table below. Data submitted to IRAS in any other format will not be accepted.
Reporting Entities must submit their XML CbC reports via
email to ct_transfer_pricing@iras.gov.sg with the following details:
- Name of the ultimate parent entity (i.e. Reporting Entity);
- Financial reporting period (DD/MM/YYYY to DD/MM/YYYY);
- If applicable, a letter of authority for a third party (e.g. a tax agent) to file on your behalf, if the third party is different from the one you have authorised via CorpPass.
The XML CbC report must be zipped (file extension must be in zip format *.zip) and password-protected^, with the Reporting Entity's name as the name of the file (e.g. ABC Ltd.zip). After you have emailed your CbC report, please call 6351 2609 (Mondays to Fridays, 8 am to 5 pm) to
provide us with the password to open the report.
Penalties for Non-Compliance
If a company required to file the CbC Report fails to do so by the due date, IRAS may take the following actions:
- Impose a fine of up to $1,000
If this fine is not paid, the person responsible for the offence may be imprisoned for up to six months. - Impose a further fine of up to $50 for every day during which the offence continues after conviction.
A company which provides false or misleading CbC information may face the following consequences:
- A fine of up to $10,000; and/ or
- Person responsible for the offence may be imprisoned for up to two years.
For more details, please refer to our e-Tax Guide on Country-by-Country Reporting (712KB).
For enquiries, please email us at ct_transfer_pricing@iras.gov.sg.