1. The United States was reviewed as part of the 2017/2018 and the 2018/2019 peer reviews. This report is supplementary to those previous reports (OECD, 2019[1]) (OECD, 2018[2]).
2. The first filing obligation for a CbC report in the United States applies to reporting fiscal years commencing on or after 1 July 2016. The United States also allows its MNE groups to file a CbC report on a voluntary basis, for reporting fiscal years beginning between 1 January 2016 and 30 June 2016.
3. The United States implementation of the Action 13 minimum standard meets all applicable terms of reference (OECD, 2017[3]), except for the following:
It is recommended that the United States ensure that the definitions of “revenue” for the purposes of applying the threshold and for completing Table 1 are consistent with the definition in the Action 13 minimum standard, as further clarified by OECD guidance. This recommendation remains unchanged since the 2017/2018 peer review.
It is recommended that the United States’ competent authority should continue to work actively towards signing bilateral competent authority arrangements with jurisdictions of the Inclusive Framework that meet the confidentiality, consistency and appropriate use conditions, and with which the United States has an agreement in effect that allows for the automatic exchange of information. This recommendation remains unchanged since the 2017/2018 peer review.
4. The United States has laws in place to implement the BEPS Action 13 minimum standard.
5. No changes were identified.1
6. It is recommended that the United States ensure that the definitions of “revenue” for the purposes of the threshold and for completing Table 1 are consistent with the definition in the Action 13 minimum standard as further clarified by OECD guidance. This recommendation remains in place since the 2017/2018 peer review.
7. No changes were identified.
8. No changes were identified.
9. No changes were identified.
10. It is recommended that the United States ensure that the definitions of “revenue” for the purposes of the threshold and for completing Table 1 are consistent with the definition in the Action 13 minimum standard as further clarified by OECD guidance. This recommendation remains in place since the 2017/2018 peer review.
11. As at 31 March 2020, the United States has 44 bilateral relationships activated under bilateral QCAAs.2 A number of additional bilateral arrangements are expected to be signed soon. While noting that some time is needed for bilateral negotiations the United States’ competent authority should continue to work actively towards signing bilateral competent authority arrangements with jurisdictions of the Inclusive Framework that meet the confidentiality, consistency, and appropriate use conditions, and with which the United States has an agreement in effect that allows for the automatic exchange of information.
12. No changes were identified.
13. No changes were identified.
14. The US reports that in certain limited circumstances some US taxpayers are authorized to file on paper and this has resulted in a number of reports being exchanged late. The US has implemented functionality to create files in XML Schema format from the paper-filed CbC reports within their CbC report processing capability. As this issue has already been addressed no recommendation is required.
15. No changes were identified.
16. No changes were identified.
17. No changes were identified.
18. No changes were identified.
19. It is recommended that the United States’ competent authority should continue to work actively towards signing bilateral competent authority arrangements with jurisdictions of the Inclusive Framework that meet the confidentiality, consistency and appropriate use conditions, and with which the United States has an agreement in effect that allows for the automatic exchange of information. This recommendation remains unchanged since the 2017/2018 peer review.
20. No changes were identified.
21. The United States meets all the terms of reference relating to appropriate use of CbC reports.
|
Aspect of the implementation that should be improved |
Recommendation for improvement |
|
|---|---|---|
|
Part A |
Domestic legal and administrative framework – limitation on local filing obligation |
It is recommended that the United States ensure that the definitions of “revenue” for the purposes of applying the threshold and for completing Table 1 are consistent with the definition in the Action 13 minimum standard, as further clarified by OECD guidance. |
|
Part B |
Exchange of information framework |
The United States competent authority should continue to work actively towards signing bilateral competent authority arrangements with jurisdictions of the Inclusive Framework that meet the confidentiality, consistency and appropriate use conditions and with which the United States has an agreement in effect that allows for the automatic exchange of information |
|
Part C |
Appropriate use |
- |
OECD (2019), Country-by-Country Reporting – Compilation of Peer Review Reports (Phase 2): Inclusive Framework on BEPS: Action 13, OECD/G20 Base Erosion and Profit Shifting Project, OECD Publishing, Paris, https://dx.doi.org/10.1787/f9bf1157-en. [1]
OECD (2018), Country-by-Country Reporting – Compilation of Peer Review Reports (Phase 1): Inclusive Framework on BEPS: Action 13, OECD/G20 Base Erosion and Profit Shifting Project, OECD Publishing, Paris, https://dx.doi.org/10.1787/9789264300057-en. [2]
OECD (2017), Terms of reference for the conduct of peer review of the Action 13 minimum standard on country-by-country reporting, OECD Publishing, https://www.oecd.org/tax/beps/beps-action-13-on-country-by-country-reporting-peer-review-documents.pdf. [3]
← 1. The United States operates a modified filing requirement for MNEs which qualify as state security contractors. In light of the United States’ explanations and the limited number of MNE groups that are likely to qualify for the specified national security contractor status, no recommendation is made, but use of modified reporting will be monitored. This monitoring point remains in place since the 2018/2019 peer review.
← 2. In addition, joint statements have been issued by the Competent Authorities of the United States and France and by the Competent Authorities of the United States and Germany expressing the intention to spontaneously exchange CbC reports for fiscal years of MNE groups commencing on or after January 1, 2016 and before January 1, 2019, while bilateral QCAAs are being negotiated.