UK: HMRC removes requirement for UK companies to make annual country-by-country reporting notification

The change in legislation will come into effect beginning 26 July 2023.

HMRC removes requirement for UK companies

Following publication of The Taxes (Base Erosion and Profit Shifting) (Country-by-Country Reporting) (Amendment) Regulations 2023 on 5 July 2023, companies within the UK are no longer required to make an annual country-by-country (CbC) reporting notification stating which legal entity within the multinational enterprise (MNE) is the ultimate parent entity and will be filing the CbC report. This applies to both UK-headed MNEs with a consolidated group revenue of €750 million or more, and UK resident entities of non UK-MNEs that are required to complete the notification in the UK on behalf of their parent entity.

The change in legislation will come into effect beginning 26 July 2023.

The HMRC explained that the notifications no longer give HMRC useful information, and the resources currently working on notifications will be released to work on CbC reporting queries and the quality of the CbC reporting data.

Read a July 2023 report prepared by the KPMG member firm in the UK



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