Reporting Details for the Notification Requirements for CBCR for multinationals with a calendar reporting year – Deadline: 31 December 2016

Recent Developments

A number of countries have by now implemented Country-by-Country Reporting (CBCR) legislation. The first requirement based on this legislation is a requirement to notify the tax authorities in countries where a Multinational Group (Group) is presentof the identity of the entity within the Group that will file the CBCR on behalf of the Group.

In most countries that require a notification, the deadline for filing this notification is the last day of the reporting year of the Group. Since CBCR legislation is effective in many countries as of 1 January 2016, the first notification deadline, for those Groups with a calendar reporting year, will be 31 December 2016.

Certain countries, including the Netherlands, have extended the notification deadline for the first reporting year until halfway 2017. However, there are four countries (Austria, Denmark, Ireland, and Spain) that up until the date of publishing this alert, require a notification by December 31, 2016 for Groups with a calendar year-end. Please find the details as issued by each country on the process to file this notification in the table below.

Selection of the ‘Surrogate Parent’

As previously communicated, the United States will only require CBCR filings for fiscal years commencing on or after July 1, 2016. Due to this mismatch in CBCR filing requirements with many other jurisdictions requiring CBCR filings for fiscal years commencing on or after January 1, 2016, a so called "gap year" issue applies to US-based multinationals whose fiscal year commences between January 1 and June 30.

The United States has informally announced on December 13, 2016 that the IRS is expected to formally issue guidance on the possibility for voluntary filing of the CBCR in the United States. The formal announcement is expected still before the end of the year. This will allow Groups that are headquartered in the United States to select their U.S.-headquarter as the ‘surrogate’ parent for filing the CBCR in the gap-year.

Please note, however, that it is also possible to select an entity in another country as surrogate parent for the gap-year. For example, a country such as the Netherlands may be a good alternative option considering the treaty network and broad reach of the CBCR through automatic exchange.

Required Actions before December 31, 2016

For Groups that have a calendar reporting year, the abovementioned notification must be filed in the countries that are listed in the table below. Our offices in the respective jurisdictions are able to provide you with assistance for filing the notification. Please contact your B&M contact person to request this assistance.


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