Ireland has implemented Country-by-Country Reporting (CbCR) as part of its commitment to the OECD’s BEPS (Base Erosion and Profit Shifting) Action 13 framework and EU Directive on Administrative Cooperation (DAC4). These rules, administered by the Irish Revenue Commissioners (Revenue), ensure transparency and combat tax avoidance by multinational enterprises (MNEs). This guide outlines Ireland’s CbCR framework, providing finance directors with the information needed to determine applicability, reporting requirements, deadlines, penalties, and compliance resources.

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Applicability of CbCR in Ireland

Criteria for Reporting:

• CbCR obligations apply to MNE groups that meet the following conditions:
  • The group’s annual consolidated revenue equals or exceeds €750 million in the previous fiscal year.
  • The ultimate parent entity (UPE) is tax-resident in Ireland, or:
    • The UPE is located in a jurisdiction that does not require CbCR,
    • There is no agreement for automatic exchange of CbC reports with Ireland,
    • The jurisdiction fails to share the report effectively.

Relevant Legislation:

• The CbCR requirements are set out in Part 38, Chapter 3A of the Taxes Consolidation Act 1997 (TCA 1997), introduced through the Finance Act 2015, and supported by Revenue-issued guidance.

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Reporting Requirements

Information to be Reported:

• The CbC report must include detailed, jurisdiction-specific data on:
  • Total revenue (split into related and unrelated party transactions),
  • Profit or loss before income tax,
  • Income tax paid and accrued,
  • Stated capital and accumulated earnings,
  • Number of employees,
  • Tangible assets other than cash or cash equivalents.
• Each group entity must be identified, including its jurisdiction of tax residence and main business activities.

Form and Submission:

• The CbC report is filed using Revenue Online Service (ROS), and must adhere to the OECD’s XML schema. Detailed guidance for electronic submission is available on Revenue’s official website: Revenue – CbCR.

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Filing Deadlines

• The CbC report is due 12 months after the fiscal year-end. For example, if the fiscal year ends on 31 December 2023, the report must be filed by 31 December 2024.
• Constituent entities in Ireland must also notify Revenue of the designated reporting entity by the last day of the reporting fiscal year.

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Penalties for Non-Compliance

Penalties:

• Ireland imposes strict penalties for non-compliance:
  • Failure to file a CbC report may result in a fine of €19,045, with an additional daily fine of €2,535 for continued non-compliance.
  • Incomplete or inaccurate reports may lead to further penalties and potential audits.

Defences:

• Revenue may waive penalties if the MNE demonstrates that non-compliance resulted from reasonable cause and was not due to wilful neglect.

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Confidentiality and Use of Information

Data Protection:

• The information provided in the CbC report is strictly used for risk assessment and transfer pricing purposes. Revenue adheres to OECD guidelines on confidentiality and ensures data is securely handled.
• Ireland participates in the automatic exchange of CbC reports with jurisdictions that are signatories to the Multilateral Competent Authority Agreement (MCAA).