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 to notify the tax authorities in countries where a Multinational Group (Group) is present of the identity of the entity that will file the CBCR on behalf of the Group.

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

Certain countries have extended the notification deadline for the first reporting year until mid-2017. However, there are four countries (Austria, Denmark, Ireland, and Spain) that up until the date of publishing this alert, require a notification by 31 December 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 1 July 2016. Due to this mismatch in CBCR filing requirements with many other jurisdictions requiring CBCR filings for fiscal years commencing on or after 1 January 2016, a so called "gap year" issue applies to US-based multinationals whose fiscal year commences between 1 January and 30 June.

On 13 December 2016, the United States informally announced that the IRS is expected to issue guidance on the possibility for voluntary filing of the CBCR in the United States. The formal announcement is still expected before the end of the year. This will allow Groups that are headquartered in the United States to select their United States-headquarters 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. Ideally, such an entity should be located within an EU Member State (to take advantage of the EU Directive allowing automatic exchange among Member States), have signed the MCAA and benefit from a large treaty network, for example: the Netherlands, France, or the United Kingdom.

Required Actions before 31 December 2016

For Groups that have a calendar reporting year, the above mentioned 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 connect with your Baker McKenzie contact person to request this assistance.


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