The US Treasury on October 31 announced that the US and Singapore are negotiating the exchange country-by-country reports on large multinationals operating in their countries.
The information would be exchanged pursuant to a competent authority agreement in a tax information exchange agreement.
The scheme for the exchange of country-by-country reporting data was part of a 2015 deal reached between nations resulting from the OECD/G20 base erosion profit shifting (BEPS) plan.
The aim of the data exchange is to provide countries’ tax authorities with information to determine if there is a risk that large multinationals are avoiding tax through transfer pricing or other means.
By entering into this agreement, the US and Singapore would simplify reporting burdens for headquartered multinationals. Under the BEPS agreements, until such an exchange is agreed to, a country can require multinationals to provide the information directly to the tax authorities.
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