Pakistan publishes amendments to country-by-country reporting scheme

Pakistan’s Federal Board of Revenue on January 31 published amendments to draft rules that establish transfer pricing documentation and country-by-country reporting obligations on large multinational firms.

The rules are desinged to implement agreements reached by nations in the 2015 OECD/G20 base erosion profit shifting (BEPS) plan. Under this scheme, countries collect information and exchange reports on the tax affairs of large multinationals to better determine if there is a risk that a multinational is engaging in tax avoidance.

As a member of the “Inclusive Framework on BEPS,” Pakistan is among 111 countries that has pledged to implement the BEPS country-by-country reporting rules.

Pakistan’s new country-by-country reporting provisons would amend Chapter VIA of the Income Tax Rules, 2002.