Today, the OECD released guidance on transfer pricing documentation and country-by-country (CbC) reporting, building upon the September 2014 report that described a standardized approach to transfer pricing documentation.  Today’s release sets out guidance on the implementation of CbC reporting including:  (i) the timing for requiring CbC reporting (generally for fiscal years beginning on or after January 1, 2016); (ii) which multinational enterprise groups would be required to file CbC reports; (iii) the necessary conditions underpinning countries’ obtaining and using the CbC reports; and (iv) the framework for government-to-government mechanisms for exchanging CbC reports together with the work plan for developing an implementation package.  The guidance also recommends implementing the master file and local file elements of the new transfer pricing documentation standard through local country laws and filing the master file and local file directly with the tax administrations in each relevant jurisdiction, in accordance with local legislation.

This guidance, along with other elements of the Base Erosion and Profit Sharing project, will be presented during a G20 Finance Ministers meeting on February 9-10 in Istanbul, Turkey.