On August 31, 2016 the Liechtenstein Government issued a press release announcing that during its meeting of August 30, 2016 it adopted a Report and Proposal regarding the Multilateral Competent Authority Agreement on the exchange of Country-by-Country Reports (MCAA CbC) as well as the law on the international automatic exchange of Country-by-Country Reports of multinational corporations (CbC Act).

Under CbC legislation multinational firms with total consolidated revenues exceeding a certain amount are obliged to file a so-called “Country-by-Country Report” (CbC Report) in the jurisdiction in which the ultimate parent entity of a multinational group is resident for tax purposes. The report is to provide information relating to the global allocation of income and taxes paid, together with other indicators of the location of economic activity within the group. It will also cover information about which entities do business in a particular jurisdiction and the business activities each entity engages in. The jurisdiction in which the parent entity is resident for tax purposes, on its turn then shares this information with other jurisdictions where the company operates.

In the press release as issued by the Liechtenstein Government it is stated that a CbC Report is to be filed by a multinational groups with a consolidated annual revenue exceeding CHF 900 million.

According to the press release the Liechtenstein CbC law is to come into force on January 1, 2017, if the referendum deadline expires unused. It is also stated that for the reporting period 2016 Liechtenstein based multinational groups will have the possibility to voluntary submit a CbC Report in order to avoid that these Liechtenstein based multinational groups will have to file the CbC Reports locally in each country in which they are active.

Click here to be forwarded to the press release as issued on August 31, 2016 by the Liechtenstein Government (The press release is only available in the German language).

Copyright – internationaltaxplaza.info

Are you looking for a highly motivated new member for your tax team? Then place your Job Ad on International Tax Plaza!

and

Stay informed: Subscribe to International Tax Plaza’s Newsletter! It’s completely FREE OF CHARGE!