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
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.