July 16, 2018
On 11 July 2018, the Federal Inland Revenue Service (FIRS) released some administrative documents to aid in the implementation of the recently published Income Tax (Country by Country Reporting) Regulations (The Regulations). The administrative documents and the summary of their contents are as shown below:
The Guidelines on CbyC Reports provides clarification to qualifying Multinational Enterprises (MNEs) on the procedures for completing and submitting the CbyC Reports as required under the Regulations. The key highlights include:
i. Definitions of key terms including Reporting Entity, Ultimate Parent Entity and Constituent Entity;
ii. Procedures for completing the CbyC template for reporting.
Furthermore, the Guidelines on CbyC Reports stipulates that the “Organisation for Economic Cooperation and Development Recommendations on the Implementation of CbyC Reporting” shall be relied on for any clarification that is not provided in the document.
This Guidelines emphasises on the appropriate use of the information contained in the CbyC Report as stipulated within the Regulations. This was introduced to address the concern of possible misuse of such information by government authorities and other persons who have access to it.
This form is to be used by MNEs in complying with the notification requirements within the Regulations.
The speedy issuance of the administrative documents by the FIRS indicates its readiness to implement the provisions of the Regulations. Thus, taxpayers need to be proactive and put in place adequate measures to ensure compliance with the Regulations.
Follow this link to access the documents.