The Country-by-Country reporting contains standardized and schematic information about the group’s activities, allocation of income and taxation in the countries where the group has domiciled subsidiaries and permanent establishments.

Companies that are part of a multinational group for which a country-by-country report must be submitted must notify the Tax Administration that they are covered by the country-by-country reporting obligation. In the reporting, the company must state which company in the group submits the country-by-country report and where this company is domiciled for tax purposes. The notice must be sent to the Tax Administration before the end of the income year for which the country-by-country report must be submitted. This follows from Section 51 of the Tax Control Act.

The reporting must be sent to the local Tax Administration, where the largest part of the group is located.

Country-by-Country reporting is implemented in most of all OECD countries and what they call the reporting is slightly different. Below we have notes on a few of the countries that have introduced Country-by-Country.

Denmark

The country-by-country reporting obligation for multinational groups

All multinational groups with a consolidated turnover of 5.6 billion DKK or more must submit a country-by-country report (a standardized and schematic report on the group’s financial activities in each individual country throughout the world). See SKL §§ 47-52.

The report must contain information related to the multinational group’s global distribution of income and taxes paid, as well as certain indicators of where the economic activity takes place within the group. In addition, the multinational group must identify each unit of the group, indicate the tax location of the units and indicate the activities in which each unit is engaged.

The provisions in SKL §§47-52 follow the OECD standard for country-by-country reporting. See TPG chapter V, which contains requirements that the largest multinational groups must report schematic information to the tax authorities in all the countries where the groups are present.

The country-by-country report must basically be submitted to the tax authorities in the country where the group’s ultimate or substitute parent company is domiciled. The report is then automatically exchanged by the tax authority in this country with

the tax authorities in all the other countries where the group is present through a group company.

Sweden

Country-by-country reporting (DAC4/Country-by-Country Reporting)

A multinational group with a turnover of at least SEK 7 billion must submit one country-by-country report with certain information on the group’s operations.

Validation of the file takes place in connection with submission to the e-service. Electronic submission of reporting via XML file takes place via the Country-by-Country Reporting (CbCR) e-service – submit files on the (Swedish) Tax Agency’s website.

The Swedish tax authority annually exchanges the country-by-country reports submitted by Swedish companies with relevant tax authorities in other countries through automatic information exchange. The rules are based on the OECD standard for country-by-country reporting (CbCR). The OECD standard is implemented in the EU through a special directive (DAC 4).

Norway

Country-by-Country reporting Country-by-Country reporting for multinational enterprises (MNE)

Multinational enterprises (MNE) with a consolidated income of more than NOK 6.5 billion per year must submit a report with aggregated information on the activity in all countries in which they do business. 

Any Norwegian entity in a multinational group must notify the Norwegian tax authority of the reporting entity’s identity and tax domicile. This notice will be integrated with the tax return, and Norwegian entities must complete required country-by-country report (notice) information about the financial year in the tax return by 31 May of the year following the end of the accounts.

Germany

Country-by-country reporting (CbCR)

Country-by-country reporting (CbCR) aims to provide tax authorities with additional information on cross-border business structures. The generation of country-based reports for multinational companies and the automatic exchange of their information is intended to allow tax authorities to better review them. The Bundeszentralamt für Steuern (BZSt – German Federal Central Tax Office) is the central body for exchanging these reports in Germany.

axsolutions Country-by-Country for Dynamics

The module supports all Dynamics AX versions from AX3.0, AX4.0, AX2009 to AX2012 and we are also ready with a version for Dynamics 365 FO.

We follow the applicable legislation and continuously adjust the product with the latest experience and changes in the legislation. The reporting takes place via spreadsheet input, which is created on the basis of data from several accounts. and which can easily be from several different systems. After the import into Microsoft Dynamics AX eller Microsoft Dynamics 365FO, the XML file is created for the reporting. The system stores the reported data, which can be adjusted and resubmitted as needed.

axsolutions helps to ensure that the customer can create a reporting file that meets the applicable legal requirements.

Once the module is installed, we are happy to help the customer update the master data and ensure that the reported data can be validated by the official validation programs.

axsolutions’ solutions are in independent tables and screens and have no direct corrections in the standard Dynamics application.