Clarification of the definition for "residence"

Paragraphs 271-277 of Part 2 of Annex V to the Implementing Regulation (EU) No 2021/451 (ITS) give specific instructions for templates that have a 'Geographical breakdown by residence of the counterparty' (F 20.4 – F 20.7). Paragraph 271 of Part 2 specifies that “templates 20.4 to 20.7 contain information ‘country-by-country’ on the basis of the residence of the immediate counterparty as defined in paragraph 43 of Part 1 of this Annex”. Paragraph 43 of Part 1 mentions that “the counterparty sector allocation shall be based exclusively on the nature of the immediate counterparty. The classification of the exposures incurred jointly by more than one obligor shall be done on the basis of the characteristics of the obligor that was the more relevant, or determinant, for the institution to grant the exposure”.  Therefore, the segmentation made in template F 20.04 has to be done based on the residence of the obligor. A definition of it could be found in paragraph 86 of Part 2 of Annex II to the ITS: “the term ‘residence of the obligor’ refers to the country of incorporation of the obligor”.