How to Automate Country-by-Country (CbC) Reporting for MNEs

 


How to Automate Country-by-Country (CbC) Reporting for MNEs

In an increasingly interconnected global economy, multinational enterprises (MNEs) face growing pressure to comply with complex tax reporting requirements.

One of the most critical among these is Country-by-Country (CbC) reporting, mandated by OECD’s BEPS Action 13.

This requirement aims to prevent tax base erosion by ensuring transparency in global income distribution, tax paid, and business activities.

📌 Table of Contents

🌍 What Is CbC Reporting?

Country-by-Country (CbC) reporting is a transparency initiative introduced by the OECD under BEPS Action 13.

It requires large multinational groups—those with annual consolidated revenues above €750 million—to provide detailed reports on the allocation of income, taxes paid, and business activity by jurisdiction.

The information helps tax authorities assess transfer pricing risks and ensure companies aren’t shifting profits to low-tax jurisdictions unjustly.

🛠 Challenges of Manual CbC Reporting

Preparing CbC reports manually is time-consuming, error-prone, and costly.

MNEs often struggle with data silos, inconsistent formats across jurisdictions, and evolving regulatory frameworks.

Moreover, aligning financial, HR, and operational data across multiple countries is inherently complex.

🤖 Key Technologies for Automation

Leading firms are now deploying legal tech and AI-driven platforms to automate CbC reporting.

Popular technologies include:

  • ETL Pipelines: Extract, transform, and load cross-border financial data in real time.

  • RPA (Robotic Process Automation): Auto-fill CbC forms with validated datasets.

  • APIs: Integrate with ERP and tax software like Oracle NetSuite and SAP S/4HANA.

  • Secure Cloud Storage: Maintain encrypted tax data archives accessible to local authorities.

Platforms like Workiva, OneTrust Tax, and Deloitte’s myInsights are examples of CbC-focused solutions.

🚀 Benefits of Automating CbC Reporting

Automation doesn’t just reduce reporting effort—it also minimizes audit risks and improves governance.

Additional benefits include:

  • Shorter filing cycles across jurisdictions

  • Improved data quality and consistency

  • Reduced compliance costs

  • Lower risk of penalties for late or inaccurate submissions

💡 Final Thoughts

As regulatory scrutiny increases worldwide, MNEs can no longer rely on spreadsheets and manual compliance processes.

Automating CbC reporting ensures accurate, on-time submissions while empowering tax and finance teams to focus on strategic initiatives.

By investing in the right technologies today, enterprises can not only meet compliance requirements but also future-proof their tax functions.

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Keywords: CbC reporting, BEPS Action 13, tax compliance automation, multinational enterprise, legal tech