OECD releases IT-format for exchange on tax rulings under BEPS Action 5
The OECD has released its standardised IT-format for the exchange on tax rulings (ETR) between jurisdictions to meet the new tax framework following adoption of BEPS Action 5 on countering harmful tax practices more effectively
The ETR XML Schema is part of the OECD’s work to ensure the swift and efficient implementation of the Base Erosion and Profit Shifting (BEPS) measures, endorsed by G20 Leaders as part of the final BEPS Package in November 2015.
As a key outcome of the work on BEPS Action 5, Countering Harmful Tax Practices More Effectively, Taking into Account Transparency and Substance, a framework covering all rulings that could give rise to BEPS concerns in the absence of compulsory spontaneous exchange has been agreed.
The framework covers six categories of rulings:
- rulings related to preferential regimes;
- cross border unilateral advance pricing arrangements (APAs) or other unilateral transfer pricing rulings;
- rulings giving a downward adjustment to profits;
- permanent establishment (PE) rulings;
- conduit rulings; and
- any other type of ruling where the FHTP agrees in the future that the absence of exchange would give rise to BEPS concerns.
The new information exchange rules came into force from 1 April 2016 for future rulings and the exchange of certain past rulings will need to be completed by 31 December 2016. Adoption is dependent on the proviso that countries have the necessary legal basis for exchange of information under this framework.
The ETR XML Schema provides the common IT-format for implementing the exchanges on tax rulings between competent authorities, as outlined in Action 5.
A related ETR XML Schema user guide is also available, including guidance on how to make corrections of data elements within a file.
The ETR XML scheme is available here
For further information on the OECD’s work on the exchange on tax rulings within the framework of BEPS Action 5 see: Countering Harmful Tax Practices More Effectively, Taking into Account Transparency and Substance, Action 5 – 2015 Final Report
The final OECD BEPS package is available here
