On September 27, 2017, a specific Qualifying Agreement between Competent Authorities of Italy and the United States foresaw the automatic exchange of Country-by-Country Reports (CBCR).
This Administrative Agreeement between Italy and the United States will allow the data contained in the accounts to be exchanged within fifteen months from the last day of the multinational group tax period to which the accounts relate.
The first country-by-country reporting on a tax period commencing on 1 January 2016 or on a subsequent date shall be transmitted by a Competent Authority to the other within eighteen months of the last day of that period.
With Revenue Procedures 2017-23, the US Internal Revenue Service has clarified that US Country-by-Country Regulations apply to the fiscal period of Parent Company which is resident in the United States that begins on June 30, 2016 or later ( "The CbC reporting rules apply to reporting periods of the parent parent entity of US MNE groups that begin on or after the first day of the first taxable year of the ultimate parent entity that begins on or after June 30, 2016”).
Again with reference to 2016, US law does not foresee CBCR obligations for parent companies in the United States with a tax period beginning on a day between January 1 and June 29, 2016. However, even if there is no of the obligation, the US accepts the "voluntary filing" of the CBCR by the Parent Company Parent residing in the United States.
The CBCR will then be sent to the jurisdictions, entities belonging to the multinational group, with which a Qualifying Agreement for the Exchange of CBCRs has been concluded.
The signing of this Administrative Agreement between Italy and the United States thus permits the occurrence of the condition set out in Article 2 (7) (c) of Decree 23 February 2017 of the Minister of Economy and Finance, which, together with the occurrence of the other conditions set forth in paragraph 7 above, constitutes - in the case of a voluntary presentation of the reporting by the parent company of a multinational group with one or more entities belonging to the group resident in Italy - reason for exemption from the obligation provided for in paragraph 2 of Article 2 of the aforementioned Decree of 23 February 2017 ("local filing").
The legal basis of the Agreement is to be found in the Convention between the Government of the United States of America and the Government of the Italian Republic to avoid double taxation on income tax and to prevent tax evasion, signed in Washington on 25 August 1999, Article 26 of which allows the exchange of information between Competent Authorities of the Contracting States, including automatic exchange.