Instructions For Form 8975 And Schedule A (Form 8975) - Country-By-Country Report Page 2

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means American Samoa, Guam, the Northern Mariana
Tax jurisdiction of residence. A business entity generally
Islands, Puerto Rico, and the U.S. Virgin Islands.
is considered a resident in a tax jurisdiction if, under the laws
of that tax jurisdiction, the business entity is liable to tax
U.S. territory ultimate parent entity. A U.S. territory
therein based on place of management, place of
ultimate parent entity is a business entity organized in a U.S.
organization, or another similar basis. A business entity is not
territory or possession of the United States that controls (as
considered a tax resident in a tax jurisdiction if the business
defined in section 6038(e)) a U.S. business entity and that is
entity is liable to tax in such tax jurisdiction only by reason of
not owned directly or indirectly by another business entity
a tax imposed by reference to gross amounts of income
that consolidates the accounts of the U.S. territory ultimate
without any reduction for expenses, provided such tax
parent entity with its accounts under GAAP in the other
applies only with respect to income from sources in such tax
business entity's tax jurisdiction of residence (or would be so
jurisdiction or capital situated therein.
required if equity interests in the other business entity were
traded on a public securities exchange in its tax jurisdiction of
A corporation that is organized or managed in a tax
residence).
jurisdiction that does not impose an income tax on
corporations will be treated as resident in that tax jurisdiction,
Who Must File
unless such corporation is treated as resident in another tax
jurisdiction under the previously described rules.
A U.S. person must file Form 8975 and Schedules A (Form
8975) if it is the ultimate parent entity of a U.S. MNE group
The tax jurisdiction of residence of a permanent
with revenues of $850 million or more in the immediately
establishment is the jurisdiction in which the permanent
preceding reporting period. A U.S. territory ultimate parent
establishment is located.
entity may designate a U.S. business entity to file on its
A business entity that does not have a tax jurisdiction of
behalf.
residence is considered “stateless.”
When making the determination of whether you are the
Ultimate parent entity of a U.S. MNE group. The ultimate
ultimate parent entity of a U.S. MNE group, a business
parent entity of a U.S. MNE group is a U.S. business entity
entity’s tax jurisdiction of residence is the business entity’s
that:
country of organization if the business entity does not
Owns directly or indirectly a sufficient interest in one or
otherwise have a tax jurisdiction of residence.
more other business entities, at least one of which is
Exceptions from filing. You are not required to file Form
organized or tax resident in a tax jurisdiction other than the
8975 if the annual revenue of your group for the immediately
United States, such that the U.S. business entity is required
preceding reporting period was less than $850 million.
to consolidate the accounts of the other business entities
with its own accounts under U.S. GAAP (or that would be so
When To File
required if publicly traded); and
Attach Form 8975 and Schedules A (Form 8975) to your
Is not owned directly or indirectly by another business
income tax return and file them with the IRS by the due date
entity that consolidates the accounts of such U.S. business
(including extensions) for that income tax return. The Form
entity with its own accounts under GAAP in the other
8975 and Schedules A (Form 8975) should be attached, if
business entity's tax jurisdiction of residence (or that would
applicable, to Forms 1120, 1065, 1065-B, 1120S, 1120-L,
be so required if publicly traded in its tax jurisdiction of
1120-PC, 1120-REIT, 990-T, and 1041.
residence).
Extension of time to file. To request an extension of time
U.S. business entity. A U.S. business entity is a business
to file Form 8975, you must follow the instructions for the
entity that is organized or has its tax jurisdiction of residence
income tax return to which Form 8975 and Schedules A
in the United States. Foreign insurance companies that elect
(Form 8975) will be attached.
to be treated as domestic corporations under section 953(d)
are U.S. business entities that have their tax jurisdiction of
How To File
residence in the United States. A business entity that is a
limited liability company that is organized in the United
Electronic Filing
States, and is wholly owned (directly) by another business
entity that has its tax jurisdiction of residence and is
If you file your income tax return electronically, see the
organized in the United States, will be considered a U.S.
instructions for the income tax return for general information
business entity that has its tax jurisdiction of residence in the
about electronic filing.
United States.
If you are filing Forms 1120, 1065, 1065-B, 1120S, or
U.S. MNE group. A U.S. MNE group comprises the ultimate
1041 electronically, you must attach Form 8975 and
parent entity of a U.S. MNE group and all of the business
Schedules A (Form 8975) electronically in the correct format,
entities required to consolidate their accounts with the
not as a binary attachment.
ultimate parent entity's accounts under U.S. GAAP (or that
Note. In order to ensure the timely automatic exchange of
would be so required if publicly traded), regardless of
the information on Form 8975 and Schedules A (Form 8975),
whether any such business entities could be excluded from
you are encouraged to file your return electronically.
consolidation solely on size or materiality grounds.
Business entities are not considered part of the U.S. MNE
Amended Form 8975. If you file a Form 8975 and
group if the income or assets of the business entities are
Schedules A (Form 8975) that you later determine should be
included in the financial statements of the ultimate parent
amended, file an amended Form 8975 and all Schedules A
entity based on the equity method or fair value accounting.
(Form 8975), including any that have not been amended,
with an amended tax return. Use the amended return
U.S. territory or possession of the United States. The
instructions for the return with which you originally filed Form
term “U.S. territory or possession of the United States”
8975 and Schedules A (Form 8975) and check the amended
report checkbox at the top of Form 8975.
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Instructions for Form 8975 (June 2017)

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