Cyprus implements country by country reporting
Following publication in the Official Gazette on December 30 2016, the agreement is now binding on Cyprus in accordance with Article 169.3 of the Constitution, mondaq reported.
The agreement requires multinational enterprises to report specified information annually in respect of each tax jurisdiction in which they do business in a country-by-country report.
As an EU member state, Cyprus must adopt the reporting procedure and templates prescribed in Annex III of EU Directive 2016/881/EU, amending EU Directive 2011/16/EU on administrative cooperation in the field of taxation.
The procedure and templates apply to all multinational enterprises with an annual consolidated turnover of €750 million or more.
The ultimate parent entity of such groups must submit a report in the prescribed form to the tax authorities of its country of residence, providing specified information on a country-by country basis.
This information is then forwarded to the tax authorities of other concerned countries.
If the parent entity is resident in a country which has no obligation to file a country-by-country report, or if there is no effective mechanism for exchanging information with the country in which the parent entity is resident, the group must designate a surrogate parent entity in a jurisdiction within the reporting network which can provide effective information sharing. ■