Singapore’s tax authority has prepared a tax guide addressing how large multinationals can fulfill their obligation to prepare and submit country-by-county reports of their business operations.
The guide, issued October 10, notes that Singapore intends to implement country-by-country reporting from fiscal year 2017 consistent with the final output under action 13 of the OECD/G20 base erosion profit shifting (BEPS), agreed to October 2015.
Under the BEPS scheme, for first time, taxing authorities throughout the world will be able to determine how MNEs allocate their income and tax payments to a specific country and to other countries.
The country-by-country reports will be used by tax authorities to determine transfer pricing risk, such as whether companies have shifted substantial amounts of income to low tax jurisdictions, and other BEPS related risks, and thus identify which companies should be audited.
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