US, Portugal agree to exchange country-by-country reports on multinational firm tax

The US IRS this week announced that the US and Portugal have signed an agreement to exchange country-by-country reports on the tax affairs of large multinational firms.

The reports are designed to assist tax authorities of the two countries determine which multinationals operating in their countries are likely to be engaged in tax avoidance though transfer pricing or otherwise.

The competent authority agreement, signed October 2, will simplify gthe tax reporting obligations of large multinational firms. It also implements the two nations’ commitments under the 2015 OECD/G20 base erosion profit shifting (BEPS) plan.

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