What is Form 8975?
Form 8975, known as the Country-by-Country Report, is a tax document that U.S. multinational companies must complete. It requires these companies to report financial data for each country where they operate. This report helps tax authorities ensure compliance with international tax laws and prevents tax evasion by providing detailed insights into revenue, taxes paid, and economic activities. By promoting transparency, Form 8975 aids in identifying potential tax issues, ensuring fair taxation, and reducing the risk of base erosion and profit shifting (BEPS).
What is Form 8975 used for?
Form 8975 is important for multinational companies:
- Annual Reporting: It reports data about a U.S. multinational enterprise (MNE) group by country.
- Financial and Employee Data: It shares financial and employee details for each tax area where the MNE operates.
- Entity Information: It lists the MNE's entities, their tax jurisdictions, countries of organization, and main business activities.
- Revenue Threshold: It's required for U.S. persons with over $850 million in annual revenue.
How to fill out Form 8975?
- 1
Confirm if you are the ultimate parent entity of a U.S. multinational enterprise group.
- 2
Check if your group's combined annual revenue is over $850 million for the last reporting period.
- 3
List the U.S. MNE group's constituent entities, noting their tax jurisdiction, country of organization, and main business activities.
- 4
Attach Form 8975 to the U.S. MNE or designated business entities' income tax return by the due date.
Who is required to fill out Form 8975?
Ultimate parent entities of U.S. multinational enterprise (MNE) groups with annual revenue over $850 million are responsible for completing Form 8975.
Tax authorities use this form to collect financial data about MNE groups, aiding in compliance with international tax standards and ensuring adherence to reporting requirements.
When is Form 8975 not required?
Form 8975 is not required if your U.S. multinational enterprise (MNE) group had annual revenue below $850 million in the previous reporting period. Additionally, entities that lack international operations or those not part of a multinational enterprise group don’t need to file this form. Always check your specific situation to ensure compliance.
When is Form 8975 due?
The deadline for Form 8975 is no later than eight and a half months after the end of the fiscal year. For calendar-year taxpayers, this means it is due on October 15. Fiscal-year taxpayers have earlier deadlines. The form is filed with the ultimate parent entity's income tax return and shared with other jurisdictions through automatic exchange of information.
How to get a blank Form 8975?
To obtain a blank Form 8975, Country-by-Country Report, simply visit our website. The Internal Revenue Service (IRS) issues this form, and we have a blank version ready for you to fill out. Remember, our platform helps you fill and download forms but does not support filing them.
Do you need to sign Form 8975?
No, you do not need to sign Form 8975, as it is strictly for reporting financial and employee data. However, always check for the latest updates to ensure compliance. With PDF Guru, you can fill out this form and download it for your records, but remember that submission and online sharing are not supported.
Where to file Form 8975?
Form 8975 can be submitted electronically or by mail. For electronic filing, attach it to your income tax return using the Modernized e-File system in the correct XML format.
If you prefer mailing, send a copy of page 1 to Ogden. While paper returns are allowed, electronic filing is recommended for quicker processing and automatic report exchanges.
