The US and Indonesia have signed a competent authority agreement providing for the exchange of country-by-country reporting data on large multinatinal groups, US Treasury has announced.
The agreement, signed June 13, will simplify existing tax reporting burdens of large multinationals headquartered in the two countries. It will also allow the two countries’ tax authorities to more easily acquire information about large multinationals operating in their countries to help determine if the multinational might be engaging in tax avoidance through inappropriate transfer pricing or other means.
The country-by-country reporting system was established in the 2015 OECD/G20 base erosion profit shifting (BEPS) plan agreements. Both the US and Indonesia are members of the “Inclusive Framework on BEPS,” a coalition of over 100 countries that have pledged to implement country-by-country reporting and other “minimum standards” resulting from the BEPS project.
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