Country by Country reporting and XML

Country by Country reporting (CbCR) and XML tagging has been a reality since 2016. Submissions to HMRC’s online reporting service must be made in XML, a specified mark-up language. XML tagging software transforms company data to the correct format.

HMRC requires extensive data for each territory where your group has a presence. The annual information required includes annual statements of revenues, earnings before income tax and the local Tax Identification Number for each entity amongst others.

CbCR has taken on increased significance following the implementation of Pillar Two, as it plays a central role in the application of the Pillar Two rules for many groups and an opportunity to simplify Pillar Two compliance and reporting if the CbCR process is designed well.

CbC reporting services

Our Corporate International tax team works with clients to design the CbCR process in accordance with relevant regulations.

We also manage the XML tagging and CbCR. We will guide you through the process of matching your data to HMRC’s XML schema. Our template makes it fast and easy to import your data.

Once the template is completed and our XML software has created an XML format output file, we will check and validate the tagged data. Our approach to validating data replicates that of HMRC, so you can be confident that your submitted CBC XML files are accepted first time by HMRC.

We can handle the final submission of online forms for you. Our client portal allows you to oversee the whole process from template to submission.

We can also offer assistance Pillar Two with safe harbour review, including the transitional CBCR safe harbour and whether a CBCR report constitutes a qualifying CBCR report for the purposes of a particular territory for Pillar Two purposes (for further details), to refine the scope of your compliance obligation.

XML Country by Country charges

We charge flat fees for tagging and filing your XML CbC report. Any additional support you require will be charged on a time-spent basis but we will be a clear as we can on pricing and potential fees. We do not like surprises any more that you do.