For large businesses operating in the UK, the first country-by-country (CbC) reporting notification is due to Her Majesty's Revenue and Customs (HMRC) on September 1 for fiscal years beginning January 1, 2016.
CbC reporting, as we've written about previously in our 2016 summer/fall issue of OnPoint Magazine, applies in the UK to companies with sales of 750 million euros (in the U.S., the reporting requirement, set by the IRS, starts at $850 million).
Recently, HMRC introduced a requirement that, along with the full CbC report due, HMRC must also be notified by large UK companies (or those with a large presence in the UK) about where the company will be filing its CbC report (i.e., in which territory).
HMRC asks to be notified of the following:
Name of the entity making the filing
The entity's tax ID
In which territory the CbC report will be filed
HMRC has said that only one report needs filing per group (including corporations, pass-through entities, branches, and other permanent establishments). Information on multiple entities can be reported at the same time.
There is no specific form required by HMRC; rather, HMRC, suggests including all relevant information on a spreadsheet and e-mailing the spreadsheet to HMRC at this dedicated e-mail mailbox: [email protected]
The normal CbC reporting deadline is to be at the end of the entity's accounting period, although for this first year of reporting, the deadline is September 1.
So, what does this mean for you? If your business meets the above-mentioned thresholds in the UK, the time to file is upon you. If you are a U.S. company meeting the IRS' thresholds, the IRS has stated that as of September 1, Form 8975 may be filed for early reporting periods (otherwise not due until next year's tax filing). It is time to review both the requirements and your information collection systems, so that you can be in compliance with the upcoming rules.
You’ve heard our thoughts… We’d like to hear yours
The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].
Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.
This site uses cookies to ensure that we give you the best user experience. Cookies assist in navigation, analyzing traffic and in our marketing efforts as described in our Privacy Policy.