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ARTICLE · 07 JANUARY 2019

Filing Country-By-Country Report Locally

CbCR is step towards achieving the international commitment of India and to prevent base profit erosion.

IndiaTax

1. INTRODUCTION OF BASE EROSION AND PROFIT SHIFTING (BEPS) IN INDIA 

INDIA - The Indian Government vide Notification No. 88/2018 dated 18.12.2018 has finally implemented Country-by-Country Reporting (CbCR) filing requirements in terms of OECD guidelines.

It shall be applicable for Indian constituent entities of large multinationals parented in some foreign countries, including United States, Saudi Arabia, United Arab Emirates, Sri Lanka and Taiwan.

COUNTRIES - US is one of the prominent countries along with UAE, Saudi Arabia, Taiwan and Sri Lanka that has not entered in an agreement for the exchange of information with India.

The Amendment as made by the Indian Government will majorly impact constituent entities of US Multinational Enterprises (MNEs) for the reason being the enormous presence of US-based companies in India. In India, US is one of the largest contributories to Foreign Direct Investment in India.

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