11/07/2016 – The OECD has today released its standardised IT-format for the exchange on tax rulings (ETR) between jurisdictions – the ETR XML Schema – as well as the related User Guide.
The ETR XML Schema is part of the OECD’s work to ensure the swift and efficient implementation of the BEPS measures, endorsed by G20 Leaders as part of the final BEPS Package in November 2015.
As a key outcome of the work on BEPS Action 5, a framework covering all rulings that could give rise to BEPS concerns in the absence of compulsory spontaneous exchange has been agreed. The framework covers six categories of rulings: (i) rulings related to preferential regimes; (ii) cross border unilateral advance pricing arrangements (APAs) or other unilateral transfer pricing rulings; (iii) rulings giving a downward adjustment to profits; (iv) permanent establishment (PE) rulings; (v) conduit rulings; and (vi) any other type of ruling where the FHTP agrees in the future that the absence of exchange would give rise to BEPS concerns.
Provided countries have the necessary legal basis, exchange of information under this framework has started as from 1 April 2016 for future rulings and the exchange of certain past rulings will need to be completed by 31 December 2016.
The ETR XML Schema provides the common IT-format for implementing the exchanges on tax rulings between Competent Authorities, as foreseen by Action 5.
The related ETR XML Schema User Guide further explains the information required to be included in each data element to be reported. It also contains guidance on how to make corrections of data element within a file.
For further information on the OECD’s work on the exchange on tax rulings within the framework of BEPS Action 5 see: Countering Harmful Tax Practices More Effectively, Taking into Account Transparency and Substance, Action 5 - 2015 Final Report