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Country-by-Country Reporting


What is Country-by-Country Reporting

Country-by-Country (CbC) Reporting is one of the minimum standards formulated by the Organisation for Economic Co-operation and Development (OECD) to counter base erosion and profit shifting (BEPS).

Under this standard, a multinational enterprise group (MNE Group) is required to file a CbC report in relation to an accounting period where –

  • the consolidated group revenue for the preceding accounting period is at least EUR750 million (or HK$6.8 billion); and
  • the group has constituent entities or operations in two or more jurisdictions.

The CbC report requires aggregate tax jurisdiction-wide information relating to the global allocation of the income, the taxes paid, and certain indicators of the location of economic activity among tax jurisdictions in which the MNE Group operates. The report also requires a listing of all the constituent entities for which financial information is reported, including the jurisdiction of incorporation of each of the constituent entities (if different from the jurisdiction of tax residence) and the main business activities carried out by that entity.

CbC reports are to be exchanged automatically between tax administrations under qualifying competent authority agreements (QCAAs).


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Reporting entities

The CbC report is required to be filed by the ultimate parent entity in its jurisdiction of tax residence.

Where the ultimate parent entity is resident in a tax jurisdiction which neither requires the filing of CbC reports nor has a QCAA in place with another tax jurisdiction, the group’s constituent entity in that other tax jurisdiction may be required to file the CbC report locally. In such circumstances, the group may authorize a constituent entity as its sole surrogate to file the CbC report in its jurisdiction of tax residence which will then exchange the report with that other tax jurisdiction.

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Filing deadline

CbC reports are required to be filed within 12 months after the end of the relevant accounting period.


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Implementation in Hong Kong

The Government's consultation to gauge views on implementation of measures by the OECD to counter BEPS started on 26 October 2016 and will end on 31 December 2016.

In the consultation paper (, CbC reporting was proposed to be implemented in Hong Kong.

Subject to necessary legislative amendments, MNE Groups will be required to file CbC reports in Hong Kong for the accounting periods commencing on or after 1 January 2018.

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Transitional arrangement

Some tax jurisdictions have introduced CbC reporting since the accounting period commencing on 1 January 2016. To facilitate MNE Groups of which the ultimate parent entities are tax residents in Hong Kong (Hong Kong MNE Groups) to fulfil their CbC reporting obligations in those jurisdictions, the Department is prepared to accommodate parent surrogate filing as a transitional arrangement.

Under this transitional arrangement, a Hong Kong MNE Group will be allowed to file its CbC reports for the accounting periods commencing between 1 January 2016 and 31 December 2017 to the Department for exchange with other tax jurisdictions. Parent surrogate filing is entirely voluntary and may relieve the group’s constituent entities from local filing obligation provided that –

  • the required legal framework will have been put in place in Hong Kong by 31 December 2017;
  • QCAAs will have come into effect between Hong Kong and the tax jurisdictions concerned by 31 December 2017;
  • the Department has been notified that the CbC reports will be filed by the deadline which is to be provided under the legal framework; and
  • the competent authorities of the tax jurisdictions in which the constituent entities are resident, if required, have been notified that the CbC reports will be filed to the Department by the deadline prescribed under the domestic legislation of the jurisdictions.

The Department is now formulating the procedures for the arrangement which will be rolled out in the first quarter of 2017. Meanwhile, the ultimate parent entity of Hong Kong MNE Group seeking parent surrogate filing in Hong Kong should submit a notification, duly signed by its director, secretary or responsible officer, to the Department containing the following information:

  • the name of the ultimate parent entity;
  • the Hong Kong business registration number of the ultimate parent entity;
  • the accounting period(s) for which the group’s CbC report(s) will be filed to the Department;
  • a list showing the name, tax identification number and jurisdiction of tax residence (relevant jurisdiction) of each of the constituent entities to be included in the CbC report; and
  • a consent given to the Department to inform the relevant jurisdictions of the ultimate parent entity's agreement to perform parent surrogate filing in Hong Kong.

The notification should be submitted by post to:

Chief Assessor (Tax Treaty)
G.P.O. Box No. 10856
Hong Kong
(Re: Country-by-country reporting)  

The notification in the form of electronic record may also be sent by email to

Hong Kong MNE Groups should take note that the transitional arrangement may not relieve their obligations in all jurisdictions since local filing requirements could vary in different jurisdictions.


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Country-by-Country Return XML Schema and User Guide

Subject to the passage of the relevant legislative amendment to the Inland Revenue Ordinance(Cap. 112), each Reporting Entity is obligated to furnish a Country-by-Country ("CbC") Return and submit the CbC Report to the Department in a specified format for the accounting period concerned.

To facilitate Reporting Entities to fulfil their obligations, the Department has developed a data schema in Extensible Markup Language (XML) which is based on the CbC XML Schema v1.0.1 issued by the Organisation for Economic Co-operation and Development. The data schema specifies the data structure and format for reporting the required CbC Report to the Department. Please click this link to download the current version of the data schema: Country-by-Country Return XML Schema (v0.1), which is released for Reporting Entities' reference.

You may also refer to the User Guide (v0.1) which explains the information that must be included in each data element of the Return XML Schema (v0.1).


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If you have any question regarding CbC reporting, you may send your enquiry to the following e-mail address: