On August 22, 2016, Liechtenstein filed its instrument of ratification of the Multilateral Competent Authority Agreement on country-by-country (CbC) reporting, reports Tax News.
With the move, Liechtenstein will be able to share the information contained in the CbC reports with tax treaty partners that have implemented the necessary reporting standards. Liechtenstein was among the first signatories of the Agreement. As of June 30, 2016, 44 jurisdictions had signed the Agreement.
The Agreement allows all signatories to bilaterally and automatically exchange CbC reports with each other, as contemplated by base erosion and profit shifting Action 13. This will help ensure that tax administrations obtain a complete understanding of how multinationals structure their operations, while also ensuring that the confidentiality of such information is safeguarded.
The first information exchanges are expected to take place in June 2018.