As part of the Base Erosion and Profit Shifting (BEPS) programme, Ireland has introduced domestic legislation to adopt the Country-by-Country (CbC) reporting requirements into Irish law in Finance Act 2015, with further amendments in the recently published Finance Bill 2016. The requirements apply for accounting periods beginning on or after 1 January 2016.
All Irish companies of multinational groups are now required to consider their obligations under the domestic legislation. Whilst an Irish entity may not have a reporting requirement, it may still be required to provide certain notifications to the Irish Revenue Commissioners.
All Irish companies (be it Irish headquartered MNEs, Irish surrogate parent entities or Irish subsidiaries of foreign MNEs), where the annualised revenue of the group is €750m or more, must notify the Irish Revenue Commissioners on or before the last day of the accounting period to which the CbC report relates, of the chosen group entity to file the CbC report and its jurisdiction of tax residence. In summary, the CbC reporting notification obligations in Ireland are as follows:
- where the ultimate parent entity of the MNE group is tax resident in Ireland, then the ultimate parent entity must notify the Irish Revenue Commissioners that it is the reporting entity;
- where a surrogate parent entity has been appointed and that surrogate parent entity is tax resident in Ireland, then that surrogate parent entity must notify the Irish Revenue Commissioners that it is the reporting entity; and
- all domestic MNE constituent entities must notify the Irish Revenue Commissioners of the name and jurisdiction of tax residence of the reporting entity.