On December 29, 2016, the Federal Revenue Secretariat ("RFB") enacted Normative Instructions ("IN") RFB nº 1,680 and 1,681, treating, respectively, of the identification of financial accounts in accordance with the CRS, and of CbCR, in line with BEPS Action 13.

Both financial information and CbCR information will be exchanged under the umbrella of Multilateral Convention of Mutual Administrative Assistance in Tax Matters ("Multilateral"), which counts with 106 signatory countries. In the case of financial information, the Multilateral Convention of Competent Authorities ("CAA") also applies.

Financial information for the purposes of CRS will be collected by means of e-Financeira platform, which has already been used to collect information for FATCA purposes.

CbCR will be annual and included in the system of ECF (Fiscal and Accounting Bookkeeping, system that replaced the income tax return), bringing information of companies that are part of multinational groups with final controlling shareholder residing in Brazil, such as: jurisdictions in which the group operates, location of their activities, global allocation of income, taxes paid and due, among other data.

CbCR shall only be filed by multinational groups with consolidated revenues equal to or above BRL 2.26 billion in the prior year, in line with the criteria established by European Union of requiring "CbCR" solely to multinational groups with revenues above 750 million Euros.

The first international exchange of financial information will occur in 2017, and Brazil will start sending information under CRS as of 2018.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.