United States issues Revenue Procedure on country-by-country report filing

Revenue Procedure 2017-23 was issued by the Internal Revenue Service on 19 January 2017, and sets out the process for filing Form 8975 Country-by-Country Report.

Form 8975 and its accompaniment Schedule A,  Tax Jurisdiction and Constituent Entity Information are both currently in draft version. Once finalized, the ultimate parent entity of United States multinational enterprise groups ('MNE groups) which had combined annual revenue of more than US$850,000,000 in the preceding year can file Form 8975 and Schedule A if the MNE group is operating in a tax jurisdiction which requires country-by-country (CbC) reporting for annual accounting periods beginning on or after January 1, 2016. The MNE group would then not be subject to local CbC filing for early reporting periods.

The filing will be available from 1 September 2017 for reporting periods that start on or after January 1, 2016, and will be filed as part of the income tax return.

Rev. Proc. 2017-23 acknowledges that countries other than the United States have adopted CBC reporting requirements for annual accounting periods beginning on or after 1 January 2016. Accordingly, this may create local CBC reporting for the subsidiary of a U.S. MNE group which is resident in a country which has adopted CBC reporting.




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