Under Irish CbCR legislation, which closely mirrors the OECD’s suggested model legislation, Irish resident parent companies (or where applicable, Irish subsidiaries) of MNEs with annual consolidated group revenue exceeding €750m per annum will be required to file an annual CbCR with Revenue. The CbCR will require disclosure of certain detailed financial and other information to Revenue in respect each jurisdiction in which the MNE operates. The information to be provided in the CbCR includes:
- profit (or loss) before income tax,
- income tax paid (on a cash basis),
- income tax accrued,
- stated capital,
- accumulated earnings,
- number of employees, and
- tangible assets (other than cash and cash equivalents).
Certain other information must also be disclosed on an entity-by-entity basis in respect of the nature of the business activities of each group member.
The CbCR Regulations provide additional guidance on the Irish CbCR regime, particularly in respect of the filing obligations of Irish subsidiaries of MNEs where the foreign parent is not required to file a CbCR. In such cases, Revenue will require the MNE’s Irish subsidiary to file an “equivalent country-by-country report” consisting of information the subsidiary has in its possession or alternatively has the power to obtain.
CbCR will apply for fiscal years commencing on or after 1 January 2016 and must be filed no later than 12 months after the end of the fiscal year to which the report relates. This means that the first reports will need to be filed with Revenue by 31 December 2017.
To learn more about Ireland’s adoption of CbCR and practical implementation considerations please contact Patrick McClafferty, Partner at Nexus Taxation – firstname.lastname@example.org