Country-by-Country Reporting with IDL
With the IDL solution for country by country reporting, you can meet all of the requirements for country-specific reporting to the Federal Central Tax Office.
Country-by-Country reporting (almost) at the touch of a button
The IDL solution for international corporations
With the IDL Country-by-Country Reporting solution, you can meet all requirements for country-specific reporting to the Federal Central Tax Office.
Country by country reporting (CbCR) became mandatory for international corporations from fiscal year 2016 on. According to Section 138a AO (german abbreviaton for a German Fiscal Law), corporations with at least one foreign company or permanent establishment and consolidated turnover of EUR 750 million or more must submit a country-specific report to the Federal Central Tax Office. But even companies that are not required to report should prepare themselves for the Country by country reporting standard, which sets new standards for the tax recording of international business activities.
As part of the IDL CPM Suite, IDL offers a standardized solution for automated Country by country reporting. The solution includes software and ready-made content for the efficient and secure creation of the required reports based on the IDL consolidation solution:
- Uniform and consistent data source based on the consolidation database.
- Predefined report schemes for the generation and filling of Country by country reporting table 1 (Overview of allocation of income, taxes and business activities by tax jurisdiction)
- Prepared business content that is filled dynamically from the data in the IDL consolidation solution
- Automatic validation of data
- Capture option for data that is not yet available in IDL.KONSIS
- Complete documentation along the Country by country reporting process
- Automatic generation of the required XML reporting file
- Use of the existing system options for further reporting and supplementary analyses
This enables groups subject to reporting to set up Country by country reporting in a standardized, process-reliable and comprehensible manner and thus meet the compliance requirements with regard to reporting and the reporting process.
Background: BEPS – Initiative for fair international tax competition
On behalf of the G20 countries, the OECD has drawn up an action plan within the framework of the initiative "Base Erosion and Profit Shifting" (BEPS) against profit cuts and profit transfers of multinational companies and published it on October 5, 2015. On May 25, 2016, the European Union decided to implement this BEPS action plan with 15 concrete measures in the EU with corresponding amendments to the EU Official Aid Directive (Directive 2011/16/EU).
On July 13, 2016, the Federal Cabinet adopted a draft "Act on the Implementation of Amendments to the EU Official Aid Directive and Further Measures against the Reduction of Profits and Relocation of Profits," thereby incorporating key BEPS recommendations into national law. The main contents relate to the automatic exchange of information on tax rulings and country-by-country reporting within the EU. To this end, the new Section 138a AO "Country Report of Multinational Enterprise Groups" was created at the end of 2016, which transposes OECD measure no. 13 into national tax law.
IDW PS 880 certified
The auditing company BDO confirms the correctness and reliability of the IDL.KONSIS consolidation software procedure. The audit was carried out on the basis of the audit standard IDW PS 880 and, in addition to the general and task-specific processing functions, also takes software security and documentation into account.
IDL.KONSIS supports the process of creating group financial statements based on different accounting standards. The software meticulously follows the typical consolidation workflow, offers automated functions for consolidating actual and plan data, and supports simulations and consolidations on plan data. Set the level of automation individually and use the built-in monitors to keep track of your data, open tasks and progress. Detailed posting lists help ensure audit compliance by providing the transparency that today’s auditors demand.
- Financial and management consolidation
- Audit security
- Integrated accounting standards
- High level of automation
Keep track of the processes in IDL.KONSIS on the go with IDL.CONSOLIDATION.MONITOR. This mobile app provides a current, concise status on individual company financial statements and the group consolidation process as a whole. Based on their respective roles in the process, users can view their open tasks or those of colleagues, email detailed information, share it in OneNote, or initiate further actions.
- Mobile access to process information
- Visualized status updates
- Overview of open tasks
- Comprehensive data filtering options
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