23 September 2025 OECD releases outcomes of eighth peer review on BEPS Action 13 on country-by-country reporting
On 23 September 2023, the Organisation for Economic Co-operation and Development (OECD) published the compilation of the reports from the eighth annual peer review (the Compilation) of the minimum standard with respect to Action 13 (Transfer Pricing Documentation and Country-by-Country Reporting) of the Base Erosion and Profit Shifting (BEPS) project. The Compilation, which covers 142 jurisdictions, reflects that jurisdictions' implementation of country-by-country (CbC) reporting (CbCR) is largely consistent with the Action 13 minimum standard. According to the OECD press release, more than 120 jurisdictions have introduced legislation to impose a CbCR obligation on multinational entity (MNE) groups, collectively covering almost all MNE groups with consolidated group revenue at or above the €750m threshold. Additional Inclusive Framework member jurisdictions are working toward finalizing their domestic legal frameworks for CbCR. Where legislation is in place, the implementation of CbCR has been found largely consistent with the Action 13 minimum standard. In addition, more than 4,900 bilateral relationships for the exchange of CbC reports are in place. In October 2015, the OECD released the final reports on all 15 BEPS Action Plan focus areas (See EY Global Tax Alert, OECD releases final reports on BEPS Action Plan, dated 6 October 2015). Action 13 establishes CbCR requirements as a minimum standard subject to peer review. On 1 February 2017, the OECD released terms of reference for the peer review on the implementation of BEPS Action 13 on CbCR, including the items to be reviewed in three key areas: (i) the domestic legal and administrative framework; (ii) the exchange of information framework; and (iii) the confidentiality and appropriate use of CbC reports (see EY Global Tax Alert, OECD releases peer review documents on BEPS Action 5 on Harmful Tax Practices and on BEPS Action 13 on Country-by-Country Reporting, dated 6 February 2017). The peer review process has taken a staged approach, intended to allow for the early detection of inconsistencies with the minimum standard and provide jurisdictions with an opportunity to address those inconsistencies. During phase one of the peer review, the review focused on the domestic legal and administrative framework and certain aspects of confidentiality. During phase two, the review focused on the exchange-of-information framework and appropriate use. For phase three and onward, the review has covered all three key aspects of jurisdictions' implementation.
The OECD describes the September 2025 Compilation of the reports from the eighth annual peer review of the minimum standard on Action 13 as showing that jurisdictions' implementation of CbCR is well advanced. The report on each jurisdiction generally reflects information on the jurisdiction's implementation status as of 31 March 2025 and its, exchange of CbC reports status as of 31 December 2024. The Compilation's executive summary indicates that the eighth annual peer review covers the 142 jurisdictions that provided legislation and/or information relating to their implementation of CbCR.1 The executive summary further notes that three Inclusive Framework member jurisdictions were not included in the peer review either because they joined the Inclusive Framework after 1 October 2024 (at which point it was too late to incorporate them into the current peer review process) or because they opted out of the peer review by confirming that they do not have any resident entities that are the Ultimate Parent Entity of an MNE Group above the consolidated group revenue threshold and that they will not require local filing of CbC reports.2 The Compilation contains a report for each jurisdiction reviewed. More than 120 jurisdictions have a domestic legal framework for CbCR in place. In addition, a number of jurisdictions have final legislation approved that is awaiting official publication. In this peer review, 22 jurisdictions received a general recommendation to put in place or finalize their domestic legal or administrative framework for CbCR.3 Also in this peer review, 27 jurisdictions received one or more recommendations for improvements to specific areas of their framework. In total, 58 jurisdictions either received at least one recommendation in this peer review or still have a recommendation outstanding from a previous peer review.4 With respect to the exchange of information framework for CbC reports, 101 jurisdictions have multilateral or bilateral competent authority agreements in place, resulting in more than 4,900 exchange relationships. Of the jurisdictions included in this review, 107 have undergone an assessment by the Global Forum on Transparency and Exchange of Information for Tax Purposes regarding their confidentiality and data safeguards in the context of implementing the Automatic Exchange of Information standard and did not receive any action plan from such assessment. Because the Global Forum's assessments contain non-public information on jurisdictions' internal systems and procedures, those outcomes are not published and the Compilation provides no further details on the confidentiality review. Finally, 89 jurisdictions have provided detailed information that has enabled the Inclusive Framework to obtain sufficient assurance that they have measures in place to ensure the appropriate use of CbC reports. Work will continue to monitor the implementation and operation of CbCR by members of the Inclusive Framework and to determine progress made by jurisdictions in addressing recommendations that they have received from peer reviews. The next peer review report will be released in the third quarter of 2026. The Compilation highlights the widespread implementation of CbCR requirements and the sharing of data among tax authorities through exchange of CbC reports. Companies should expect that information provided to one tax authority through the filing of a CbC report will be shared with the tax authorities of other relevant jurisdictions. Moreover, CbC reports now have an important role in Pillar Two compliance, given the Pillar Two Transitional CbCR Safe Harbour. Companies should continue to monitor developments with respect to CbCR.
Document ID: 2025-1918 | ||||||||
