File your Country-by-Country report 2016 and notification for financial year 2017 before 31 December 2017
As of January 1, 2017 new Transfer Pricing documentation requirements are in place for Dutch entities who are part of an international group with a consolidated group revenue of at least 750 million euro. One of these requirements is the filing of a Country-by-Country (CbC) report with the Dutch Tax Authorities. If another group entity is filing the report with its local tax authorities and the information can be exchanged, only a notification requirement remains. The CbC report 2017 and the notification for financial year 2017 must be submitted before 31 December 2017.
Country-by-Country report 2016
The annual CbC report must be submitted by the tax authorities in the country of tax residence of the entity. The entity who will file the CbC report on behalf of the group, must notify the tax authorities. After notification the CbC report 2016 should be with the tax authorities by December 31, 2017 latest. The requirements the CbC report should meet, are described in detail in the Regulation published December 30, 2015 by the Deputy Minister of Finance.
Country-by-Country notification 2017
Further to the eventual requirement to file a CbC report 2016 there might be an obligation to file a CbC notification 2017 as well. This obligation applies to the Dutch entities of the multinational company who has to file the CbC report. The notification must state which entity will file the CbC report in which country. For completeness sake, please be informed that - other than for the financial year 2016 – the deadline for filing your notification is the last day of the financial year. For financial years starting January 1, 2017 this implies December 31, 2017 as deadline.
How to notify the Dutch Tax Authorities
As was the case for the 2016 notification, the 2017 notification should be done electronically by entering the required information into a portal provided by the Dutch Tax Authorities. The information to be provided is the same as had to be filed for the financial year 2016. The portal – which is available in English as well – can be reached by:
Consequences of non-timely filing the 2016 report and/or 2017 notification
In case you do not file the 2016 report and/or the 2017 notification timely, you can - in case of intentional act or gross negligence - be confronted with a fine up to 820.000 euro and/or up to 4 years of imprisonment.
If you require assistance with the filing of your 2016 CbC report and/or your 2017 CbC notification, please be informed that Baker Tilly Berk can assist you on both. Please contact your local advisor for more information.