The US and Lithuania have agreed to annually exchange country-by-country reports on the tax affairs of large multinational businesses, the IRS reported on Wednesday.
The competent authority agreement (CAA), signed August 30, will simplify tax reporting burdens for US-headquartered and Lithuania-headquartered multinationals.
The CAA would also make it easier for both nations to obtain country-by-country reports. These reports are designed to help tax administrations identify which multinationals operating in their country may be avoiding tax through transfer pricing or other means.
The country-by-country reporting system was established in 2015 OECD/G20 base erosion profit shifting (BEPS) plan agreements.
The US has already concluded CAAs with 20 countries, namely, Australia, Belgium, Brazil, Canada, Denmark, Estonia, Guernsey, Iceland, Ireland, Isle of Man, Jamaica, Latvia, Malta, Netherlands, New Zealand, Norway, Republic of Korea, Slovakia, South Africa, and the United Kingdom.
Be the first to comment