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

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

IRS.gov/Form8975.

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

CAUTION

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

TIP

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)

915.

is generally the 12-month period that ends on the last day of

Definitions

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

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

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