Brazil, Guernsey, Jersey, the Isle of Man and Latvia have signed the Multilateral Competent Authority Agreement (MCAA) for the automatic exchange of country-by-country reports on tax matters.
Their decisions bring the total of signatories to 49 as part of the OECD/G20 BEPS Project to increase cross-border cooperation on tax matters.
The Organisation for Economic Co-operation and Development said the agreement would enable consistent and swift implementation of new transfer pricing reporting standards developed under the Base Erosion and Profit Shifting (BEPS) action plan and ensure tax administrations gained a complete understanding of the way multinational enterprises structure their operations through the annual automatic exchange of country-by-country reports.
Enterprises will be required to provide aggregate information annually, in each jurisdiction where they do business, on the global allocation of income and taxes paid and location of their economic activity.
The OECD/G20 BEPS Project sets out 15 actions to reform the international tax framework and ensure that profits are reported where economic activities are carried out and value created.
This was particularly important for developing countries due to their heavy reliance on corporate income tax, the OECD said.
Brazil has additionally signed the CRS Multilateral Competent Authority Agreement confirming its commitment to implementing the automatic exchange of financial account information pursuant to the OECD/G20 Common Reporting Standard in 2018. It is the 85th jurisdiction to sign.