Operations & compliance
Country-by-country reporting
Country-by-country reporting, or CbCR, requires large multinational groups to file an annual report showing revenue, profit, tax paid, employees and tangible assets broken down by tax jurisdiction, giving tax authorities a high-level map of where value and profit sit across the group before they even open a detailed audit.
CbCR filing typically applies to groups with consolidated revenue above roughly EUR 750 million, with the ultimate parent entity filing in its home jurisdiction and that report then shared automatically with tax authorities in every country where the group has a taxable presence under exchange of information agreements.
Because CbCR data is aggregated rather than transaction-level, it is used primarily as a risk-assessment tool by tax authorities, flagging jurisdictions where reported profit looks disproportionate to headcount or assets, which then often triggers a request for the more detailed local file supporting that entity.
In practice
What matters when applying country-by-country reporting
- Check the group revenue threshold applies
- Confirm which entity files the CbCR report
- Review data for outlier profit-to-headcount ratios
- Keep CbCR figures consistent with local files
- Track exchange-of-information deadlines
Frequently asked
Common questions
What revenue threshold triggers CbCR?+
Groups with consolidated revenue above roughly EUR 750 million, or the local currency equivalent, are generally required to file a country-by-country report. This matters in practice.
How do tax authorities use CbCR data?+
Tax authorities primarily use CbCR as a risk-assessment tool, comparing reported profit against headcount and assets by jurisdiction to identify entities worth auditing further. This matters in practice.
Keep reading
See how the tooling handles this in practice
Our transfer pricing tools calculate intercompany charges, benchmark financing and reconcile the intercompany ledger from your own data. Book a short walkthrough and we will show the workflow on a scenario that matches your group structure, rather than a generic demo dataset.