On April 28, 2017, France issued Decree No. 2017-672, ratifying the OECD Multilateral Competent Authority Agreement for the Automatic Exchange of CbC reports (“CbC MCAA”), which was signed in Paris on January 27, 2016. On October 1, 2016, France implemented the CbC reporting requirements introduced in the 2016 Finance Act, which will apply for fiscal years beginning on or after January 1, 2016. See BEPS Action 13.
Under the CbC MCAA, signatories may exchange CbC reports with other signatories if they have CbC reporting requirements in place and are a party to the OECD Convention on Mutual Administrative Assistance in Tax Matters (“OECD Convention”). On December 13, 2011, France ratified the 2010 protocol to the OECD Convention, which entered into force on April 1, 2012 in France. The OECD Convention includes provisions regarding the exchange of information on request, spontaneous information exchange, tax examinations in other countries, simultaneous tax examinations and assistance in tax collection.
Under the CbC MCAA, the CbC report must be exchanged no later than 15 months after the last day of the reporting fiscal year of the MNE group. The first exchange must occur no later than 18 months after the last day of the reporting fiscal year.