Where a profit-seeking enterprise that is resident in the ROC is the Ultimate Parent Entity of an MNE Group, it shall prepare a country-by-country report of the current fiscal year in accordance with the prescribed format and submit the same to the local tax collection authority within one year after the end of the fiscal year.
Where an MNE group whose UPE is not resident in the ROC, its constituent entity which is resident in the ROC shall submit the country-by-country report prescribed in the preceding paragraph if one of the following conditions applies; where there are two or more constituent entities of the same MNE Group that are resident in the ROC, the MNE Group may designate one of such constituent entities to submit the country-by-country report:
1. The Ultimate Parent Entity of the MNE Group is not obligated to file a country-by-country report in its jurisdiction of tax residence; or,
2. The Ultimate Parent Entity has filed a country-by-country report in its jurisdiction of tax residence, but such jurisdiction does not have an agreement in effect that requires the exchange of country-by-country reports to which the ROC is a party by the time specified in the preceding paragraph for submitting the country-by-country report; or,
3. The Ultimate Parent Entity has filed a country-by-country report in its jurisdiction, and such jurisdiction has an agreement that requires the exchange of country-by-country reports in effect with the ROC; however, the collection authority-in-charge is unable to acquire the country-by-country report in accordance with the agreement.
If one constituent entity is appointed by the MNE Group referred to in the preceding paragraph as a sole substitute for the Ultimate Parent Entity, to submit the country-by-country report (hereinafter referred to as the "Surrogate Parent Entity") and is resident outside of the ROC, any profit-seeking entity of the MNE Group which is resident in the ROC shall not be required to submit a country-by-country report to the local collection authority-in-charge if the MNE Group satisfies the following conditions:
1. The jurisdiction of tax residence of the Surrogate Parent Entity requires filing of country-by-country reports.
2. The jurisdiction in the preceding subparagraph has an agreement that requires the exchange of country-by-country reports in effect with the ROC by the time specified in the first paragraph for submitting the country-by-country report, and the collection authority-in-charge is able to acquire the country-by-country report in accordance with the agreement.
3. The profit-seeking enterprise has disclosed the relevant information of the Ultimate Parent Entity and Surrogate Parent Entity in accordance with Article 21.
If the Surrogate Parent Entity appointed by the MNE Group is a profit-seeking enterprise which is resident in the ROC, it shall submit the country-by-country report in accordance with the first paragraph.
The members and contents of the country-by-country report in the preceding four paragraphs are as follows:
1. “Constituent entity of the country-by-country report” shall mean an entity that meets any one of the following conditions:
(1)Any profit-seeking enterprise that is included in the consolidated financial statements of the MNE Group under the law or accounting principles generally applied in its jurisdiction of tax residence of the Ultimate Parent Entity;
(2)Any profit-seeking enterprise that is not included in the consolidated financial statements in the preceding item, but would be so required if equity interests in the Ultimate Parent Entity were traded on a public securities exchange in its jurisdiction of tax residence;
(3)Any such profit-seeking enterprise that is excluded from the MNE Group’s consolidated financial statements in the preceding two items solely on size or materiality grounds; and
(4)Any permanent establishment of any profit-seeking enterprise of the MNE group included in the preceding three items provided the profit-seeking enterprise prepares a separate financial statement for such permanent establishment for financial reporting, regulatory, tax reporting, or internal management control purposes.
2. Content of the country-by-country report:
(1)Aggregate information relating to the amount of revenue, profit (loss) before income tax, income tax paid, income tax accrued, stated capital, accumulated earnings, number of employees, and tangible assets other than cash or cash equivalents with regard to each jurisdiction in which the MNE Group operates.
(2)An identification of each constituent entity of the MNE Group setting out the jurisdiction of tax residence of such constituent entity mentioned under the preceding item, and the jurisdiction under the laws of which such constituent entity is organized, and the nature of the main business activity or activities of such constituent entity, which shall include: research and development; holding or managing intellectual property; purchasing or procurement; manufacturing or production; sales, marketing or distribution; administrative, management or support services; provision of services to unrelated parties; internal group finance; regulated financial services; insurance; holding shares or other equity instruments; dormant.
(3)A description of any activity engaged by constituent entities other than the preceding item.
A profit-seeking enterprise that is resident in the ROC being a constituent entity of an MNE Group may be exempt from the submission of country-by-country report in accordance with Paragraphs 1, 2, or 4 hereof if the group's total consolidated revenue during the fiscal year immediately preceding the reporting fiscal year is below the standards prescribed by the MOF.
In the case where the collection authority-in-charge is unable to acquire the country-by-country report as set forth in Subparagraph 3, Paragraph 2 hereof, or where the collection authority-in-charge is able to acquire the country-by-country report in accordance with the agreement as set forth in Subparagraph 2, Paragraph 3 hereof, the country or jurisdiction concerned shall be determined in accordance with a list of countries or jurisdictions with whom the ROC may not effectively carry out the exchange of country-by-country reports as released by the MOF before the submission deadline prescribed in Paragraph 1. However, in a case where the collection authority-in-charge is unable to acquire the country-by-country report of an MNE Group despite the ROC has an information exchange agreement in effect with the country or jurisdiction which is not in the prescribed list, the profit-seeking enterprise shall submit the country-by-country report within one month after receipt of a written notice sent by the collection authority-in-charge. If the profit-seeking enterprise cannot submit the report within the prescribed time limit, it may apply for an extension before the deadline. The extension can be granted only once and cannot exceed one month.