The Organisation for Economic Cooperation and Development (OECD) has announced the addition of five more jurisdictions - Brazil, Guernsey, Jersey, the Isle of Man and Latvia - to an agreement for the automatic exchange of country-by-country tax reports.

This marks a milestone in ongoing efforts to boost tax transparency in multinational enterprises (MNEs), specifically the G20 base erosion and profit shifting (BEPS) project, the OECD said.

One of the key aims of the country-by-country reporting agreement is to expedite the implementation of new transfer pricing standards developed as part of the BEPS action plan.

Under the country-by-country reporting system, MNEs will be required to provide information every year, in each jurisdiction where they operate. This information will show the global allocation of income and taxes paid, as well as which entities do business in a particular jurisdiction and their activities there.

The OECD said this approach will help tax authorities develop a more thorough understanding of how global businesses structure their operations, while protecting the confidentiality of the information submitted.

Angel Gurria, the organisation's secretary-general, marked the addition of the five new jurisdictions to the reporting agreement at a signing ceremony in Paris, where he was joined by senators and representatives from Guernsey, the Isle of Man and Jersey.

He said: "I congratulate Brazil, Guernsey, Jersey, the Isle of Man and Latvia on their efforts toward implementing the BEPS package, and on their important role in advancing greater international tax cooperation and transparency."

Improving transfer pricing documentation and promoting country-by-country reporting are two of several key measures in the BEPS action plan. Other objectives include addressing new tax challenges that have arisen in the digital economy and strengthening rules for the taxation of controlled foreign companies.