The first Country by Country Reporting (CbCR) filing deadline, for the period ended 31 December 2016, is approaching fast – are you ready to file?
The data you need
For each territory where the group has a taxable presence, businesses must provide the following information annually:
- Revenues, split between related and unrelated parties
- Earnings before income tax (but after expenses and exceptional items)
- Income taxes paid on both a cash and accrued basis (to local and other countries), including withholding tax
- Stated capital and accumulated earnings
- Number of local employees
- Tangible assets (but not cash or equivalents)
- The local Tax Identification Number for each entity.
Filing online by XML
Where a group is required to report in the UK, it must submit its CbC report to HMRC through HMRC’s online service. Groups must register for the HMRC online service so that they can obtain their CbCR reference number – it must be included in the online report.
The report must be in XML format in line with HMRC’s schema (which is based on guidance issued by the OECD). XML is a specified mark-up language that requires the application of tagging software to your data to produce the required format.
A fast and efficient service from BDO
We can manage the XML tagging and filing for your CBC reporting with a quick and effective solution to your needs.
HMRC’s XML schema for CBCR requests information that is not highlighted in the tabular view of Tables 1, 2 and 3 of the Country by Country Report in the OECD Action 13 final report and so it is essential to review the required data types carefully.
We can lead you through this. Your team can use our straightforward template to provide the base CBC data to us. The template is fully aligned to HMRC’s XML schema and has a data import function to make it fast and easy to use.
Once the template is completed we will use XML tagging software to create an XML format output file. We will run validation checks on the tagged data so that we can quickly identify any inconsistencies and resolve any queries with you. Our validation check replicates the validation carried out by HMRC's online service so, once carried out, we can ensure that your CBC XML file will be accepted first time around by HMRC.
Filing the XML tagged CBC report
Your team can submit the form or we can handle the whole process for you. We will use our BDO portal to provide you with the latest version XML template to be completed, make available the XML tagged file, as well as maintain a record of the submission to HMRC. So throughout the process you can see exactly what has been done.
We charge flat fees for tagging and filing your XML CBC report. If you need help to convert your data from another format or require assistance with the data population (or correcting validation errors) we will agree an additional fee with you.
For a quote please contact Paul Daly, Anton Hume or Malcom Joy.