Instructions For Form 8975 And Schedule A (Form 8975) - Country-By-Country Report


Instructions for Form 8975
Department of the Treasury
Internal Revenue Service
and Schedule A (Form 8975)
(June 2017)
Country-by-Country Report
Section references are to the Internal Revenue Code unless
accountant or similarly qualified independent professional
otherwise noted.
that is used for purposes of reporting to shareholders,
partners, or similar persons; for purposes of reporting to
Future Developments
creditors in connection with securing or maintaining
financing; or for any other substantial non-tax purpose.
For the latest information about developments related to
Form 8975, Schedule A (Form 8975), and their instructions,
Business entity. A business entity generally is any entity
such as legislation enacted after they were published, go to
recognized for federal tax purposes that is not properly
classified as a trust under Regulations section 301.7701-4.
However, any grantor trust within the meaning of section 671,
General Instructions
all or a portion of which is owned by a person other than an
individual, is considered a business entity.
Purpose of Form
Additionally, the term “business entity” includes any entity
with a single owner that may be disregarded as an entity
Certain United States persons that are the ultimate parent
separate from its owner under Regulations section
entity of a United States multinational enterprise (U.S. MNE)
301.7701-3, and any permanent establishment (described
group with annual revenue for the preceding reporting period
below) that prepares financial statements separate from
of $850 million or more are required to file Form 8975.
those of its owner for financial or tax reporting, regulatory, or
Form 8975 and Schedules A (Form 8975) are used by
internal management control purposes.
filers described under Who Must File to annually report
A decedent's estate or a bankruptcy estate described in
certain information with respect to the filer’s U.S. MNE group
section 1398 is not a business entity.
on a country-by-country basis. The filer must list the U.S.
Constituent entity. With respect to a U.S. MNE group, a
MNE group’s constituent entities, indicating each entity’s tax
constituent entity is any separate business entity of such U.S.
jurisdiction (if any), country of organization and main
MNE group but does not include a foreign corporation or
business activity, and provide financial and employee
foreign partnership for which information is not otherwise
information for each tax jurisdiction in which the U.S. MNE
required to be furnished under section 6038(a) (determined
does business. The financial information includes revenues,
without regard to Regulations sections 1.6038-2(j) and
profits, income taxes paid and accrued, stated capital,
1.6038-3(c)) or any permanent establishment of such foreign
accumulated earnings, and tangible assets other than cash.
corporation or foreign partnership.
Form 8975 and its Schedules A (Form 8975) must be filed
Permanent establishment (PE). The term “permanent
with the IRS with the income tax return of the ultimate parent
establishment” includes:
entity of a U.S. MNE group for the tax year in or within which
A branch or business establishment of a constituent entity
the reporting period covered by the Form 8975 ends.
in a tax jurisdiction that is treated as a permanent
Do not file Form 8975 and its Schedules A (Form
establishment under an income tax convention to which that
8975) separately from your income tax return.
tax jurisdiction is a party,
A branch or business establishment of a constituent entity
that is liable to tax in the tax jurisdiction in which it is located
The first required reporting period for an ultimate parent
pursuant to the domestic law of such tax jurisdiction, or
entity is the 12-month reporting period that begins on or after
A branch or business establishment of a constituent entity
the first day of a tax year of the ultimate parent entity that
that is treated in the same manner for tax purposes as an
begins on or after June 30, 2016. For more information, see
entity separate from its owner by the owner's tax jurisdiction
section 6038 and Regulations section 1.6038-4.
of residence.
If you want to file Form 8975 and Schedules A (Form
Reporting period. The reporting period covered by Form
8975) for a period before the first required reporting
8975 and Schedules A (Form 8975) is generally the
period, you may file them with the income tax return
12-month period of your applicable financial statement that
for the tax year of the ultimate parent entity of the U.S. MNE
ends with or within your tax year. If you do not prepare an
group with or within which the early reporting period ends.
annual applicable financial statement, then the reporting
For more information, see
Rev. Proc. 2017-23, 2017-7 I.R.B.
period covered by Form 8975 and Schedules A (Form 8975)
is generally the 12-month period that ends on the last day of
your tax year.
Tax jurisdiction. A tax jurisdiction is a country or a
For more information on the terms below, see Regulations
jurisdiction that is not a country but that has fiscal autonomy.
section 1.6038-4.
A U.S. territory or possession of the United States is
Applicable financial statement. An applicable financial
considered to have fiscal autonomy.
statement is a certified audited financial statement that is
accompanied by a report of an independent certified public
Jul 06, 2017
Cat. No. 69160R


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