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Local file instructions 2023

Use these instructions when completing the 2023 local file as part of your country-by-country reporting obligations.

Last updated 4 July 2023

How these instructions apply

While these instructions are not a guide to income tax law, you can use them to help you complete your local file when meeting this part of your country-by-country (CBC) reporting obligations.

These instructions apply to the local file for 2023. This relates to reporting periods starting from 1 January 2022.

The local file must be electronically lodged in the approved form (an XML file –generated in accordance with an ATO developed XML schema). The local file is part of a combined form, which also contains the master file. The local file may be lodged separately or together with the master file.

The local file can only be lodged electronically, through one of the following:

Lodgments via email or paper are not accepted.

The information requirements (high level design) and associated specifications (detailed design) for the local file are contained in the Local file/master file 2023. Reference to specific form elements is made via element IDs in the form of 'LCMSFXXX'.

The local file collects information and relevant documentation for international related party dealings (IRPDs). The local file is comprised of three parts:

  1. Short form
  2. Part A
  3. Part B.

A general design feature of the local file is the requirement to show values in Part A and provide written agreements in Part B for individual IRP transactions.

Specific features include:

  • Aggregating values shown in Part A for transactions covered by the same relevant agreement series RAS.
  • Not needing to provide written agreements in Part B if the IRPD transaction/RAS is covered by one of the eight categories on the exclusions list.

Where a reporting entity enters into a transaction with multiple IRP non-resident counterparties, they must complete Part A showing transactions for each IRP non-resident counterparty to the transaction.

If a single agreement covers more than one kind of transaction category, each of the transactions shown in Part A will need to be linked to the same agreement in Part B of the local file.

If you have feedback or questions regarding these instructions, contact us at CBCReporting@ato.gov.au

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