OECD Master File-concept and CbC Reporting – national implementationStatus: 31.3.2017
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Preamble
Dear Reader,
In the light of the rising pressure from the public and the G20, among other factors, the OECD has set itself an objective to combat tax planning arrangements that are solely aimed at tax evasion and profit shifting. Therefore, in April 2013, the OECD published an action plan comprising 15 actions which measures should be developed and implemented to eliminate aggressive tax planning practices.
Four of these actions relate to transfer pricing. An action that is currently the most debated and most advanced in terms of implementation is the action concerning the introduction of a three-tiered transfer pricing documentation concept (BEPS Action 13 “Transfer Pricing Documentation and Country-by-Country Reporting”). Ever since the OECD published the final report relating to this action in 2015, many measures aimed at implementing the concept at international and national level have been already taken by regulators and tax jurisdictions in many countries.
Thus, 57 countries have already signed the “Multilateral Competent Authority Agreement on the Exchange of Country-by-Country Reports (MCAA CbC)” developed to implement the international mechanism of the automatic exchange of the so-called “Country-by-Country Reports“. Among 30 most important trading partners of Germany, the USA, Turkey, Romania, Taiwan and the United Arab Emirates are the only countries which have not signed the agreement.
Nonetheless, in the meantime, the initial euphoria about the hoped-for introduction of an internationally unified concept has faded amid the heterogeneous implementation practices across countries. Many countries will indeed implement Country-by-Country Reporting, but the approach to implementing the entire three-tiered approach, which in addition to Country-by-Country Reporting also comprises a Master File and a Local File, has been very inconsistent across countries. The differences are timing- and content-related. While some countries are implementing the OECD recommendations completely and in a timely manner, the others only recognise the need to develop the national legislation relating to Country-by-Country Reporting. Even when some countries adopt the OECD concept in a more or less unchanged form, there will be differences in terms of when relevant legal frameworks are introduced.
In effect, international companies are currently (at least in the transition period now) faced with the challenge of navigating the complexities arising from va-rying documentation requirements. The aim of this publication is to offer you relevant guidance, which can be only general because the legislative processes are still pending in many countries. Nonetheless, we believe that this document will give you a sufficient understanding of the intricacies that your company may be currently faced with.
Best regards
Your
Michael Scharf Dr. Kai-Uwe Bandtel
Transfer Pricing News
TP Global Update
Contents
BEPS Action 13 7The Rödl & Partner consulting approach 9BEPS Action 13 state of implementation in selected countries 11
Implementation of Action 13 Austria 13Belarus 14Brazil 15Bulgaria 16China 17Croatia 18Cyprus 19Czech Republic 20Estonia 21Finland 22France 23Georgia 24Germany 25Hungary 26India 27Indonesia 28Italy 29Kazakhstan 30Kenya 31 Latvia 32 Lithuania 33 Mexico 34 Netherlands 35
Poland 36 Romania 37 Russia 38 Serbia 39 Singapore 40Slovakia 41 South Africa 42 Spain 43 Sweden 44 Switzerland 45 Thailand 46 Turkey 47 Ukraine 48 United Arab Emirates 49 United Kingdom 50 USA 51 Vietnam 52
Country-by-Country Reporting Notification to the tax administration 53 Countries that signed the MCAA on CbCR 55
About us 56 Rödl & Partner worldwide 57 Contact 58 Imprint 59
7
BEPS Action 13
Following the points of action developed in the context of the BEPS project against Base Erosion and Profit Shifting of multinational enterprises, countries shall implement
these actions via changes in domestic law and practices and via treaty provisions in order to protect their respective national tax bases. The BEPS Action Point 13 (”2015
Final Report – Transfer Pricing Documentation and Country-by-Country Reporting”) provides guidance for tax administrations to improve transparency by developing
rules and procedures on sufficient documentation in connection with risk assessment and transfer pricing inquiry. A standardized three-tiered approach to transfer pricing
documentation for Multinational Enterprise (MNE) groups should be adopted and should consist of the following: (i) a Master File, (ii) a Local File and (iii) a Country-by-
Country Reporting (CbCR).
The Master File contains standardized information relevant for all MNE group members and should provide a general overview of the MNE group business, placing the
MNE group's pricing practices in their global economic, legal, financial and tax contexts. Compared to already existing Master File concepts or that existed previously,
the chapters on intangible assets and financing in particular are new. In contrast to the Master File the Local File provides more detailed information relating to specific
intercompany transactions for the respective domestic taxpayer to which the Local File applies. The third component of the three-tiered approach is the CbC Reporting
which is generally compiled only by MNE groups with annual consolidated group revenue equal to or exceeding 750 million Euro. CbC Reporting requires aggregate tax
jurisdiction-wide information related to the global allocation of income, taxes paid and certain indicators of the location of economic activity among the tax jurisdictions
in which the MNE group operates.
The Master File and CbC Reporting will be helpful for risk assessment purposes. However, the Local File comprises information relevant to a detailed transfer pricing analysis
for the relevant taxing authority for each country in which the MNE group is situated.
Three-tiered approach
risk assessment transfer pricing analysis
Local File
(”specific IC transactions”)
CbC Reporting
(”high-level risk assessment”)
Master File
(”high-level overview”)
Transfer Pricing Documentation and Country-by-Country Reporting
8
The anticipated flow of information between the members of a MNE group and the taxing authorities.
In practice, the ultimate parent company is required to prepare the Master File and will share it with the constituted entities in order to comply with the documentation
requirements. The ultimate parent company has access to all essential tax information. Depending on the existing intercompany transactions, the individual country specific
Local Files can be filed centrally by the ultimate parent company or can be independently filed by the local companies. The more interlinked and versatile the intercompany
transactions between the individual associated enterprises are, the less the centralization of information filing will be feasible. In general, each ultimate parent company of
a MNE group is obligated to file a CbC Report in the country where it is resident for tax purposes. The OECD concept includes an annual exchange of information received
from the reporting entities that is a resident for tax purposes in its jurisdiction with all other competent authorities of jurisdictions with respect to which it has an agreement
in effect, and in which, on the basis of the information in the CbC Report, one or more constituent entities of the MNE group of the reporting entity are either a resident
for tax purposes, or are subject to tax with respect to the business carried out through a permanent establishment.
Many countries have already made initial arrangements to implement BEPS Action Point 13 in domestic law. An implementation will provide taxing authorities with useful
information to assess transfer pricing risks and make determinations about where audit resources can most effectively be deployed. Taxpayers are encouraged to articulate
convincing, consistent and cogent transfer pricing positions in order to be positioned to face what will inevitably be a more thorough risk assessment and audit process by
their respective taxing authorities.
CbC
Reporting
Ultimate parent
company
Constituent Entity Constituent EntityConstituent Entity
Date?
Master FileUpdate (if necessary) with
the annual tax declaration
Automatic information exchange
Date?
Local FileE.g. with annual tax
declaration
Master File
Master File Master FileMaster File
Local File
Local File Local FileLocal File
Date?
» Duty of documentation for all
FY following 1 January 2016
» Usually declaration within
12 months after the last day
of the Reporting Fiscal Year
of the MNE group
Tax administrationTax administration Tax administration
Tax administration
9
The Rödl & Partner consulting approach
Rödl & Partner's International Transfer Pricing group supports multinational corporations in the development, implementation and enhancement of their global transfer
pricing documentation concept.
Already successfully implemented international documentation projects exhibit which approaches are most suitable for multinational groups in order to achieve a more efficient
documentation preparation process. The central design as well as the default of the specification documentation concepts and the mirroring of standardized documentation
contents between single entities are essential prerequisites for a uniform approach to documentation on a group-wide basis. The following illustration provides the anticipated
workflow between Rödl & Partner and its clients during the course of a transfer pricing documentation project.
Implementation of a documentation concept
Design of the documentation concept
Facts and figures; Preparation Master File
Finalization Master File
Creation Local File Template
Coordination to national regulations
caretaker
Procurement and delivery of relevant information
Review and finalization of Local Files
Coordination with group-companies
Possibly, coordination with subsidiaries
Corporate objectives
Procurement of relevant information
Client
Coordination to national regulations
Local review to comply with national regulations
Creation national Local File
local
10
The Rödl & Partner consulting approach
Through the coordination of Rödl & Partner’s local transfer pricing consultants, the relevant group entities are identified and the scope of any necessary transfer pricing
documentation is determined in accordance with the legal frameworks in those respective countries. With an exposition of the local documentation requirements for
each jurisdiction, Rödl & Partner provides an optimal decision-making platform and provides specific recommendations with regards to proper implementation.
Providing centralized management of the documentation process, Rödl & Partner takes over the coordination efforts for clients, which has a synergistic impact on the
procurement of information and analysis of the relevant facts. As an illustrative example, the use of Rödl & Partner’s proprietary document exchange (“RDoX”) offers a
secure, simple and straightforward exchange of information as well as an individualized structuring of documentation contents.
With a view to Country-by-Country Reporting, Rödl & Partner provides via DefTax®, a system-supported control-reporting tool that allows for the capture of tax-relevant
information directly at the single company level worldwide that can then be compiled in a consolidated manner for a group level viewpoint.
As an integrated professional services firm, with wholly owned locations in countries around the world, working together with Rödl & Partner ensures straightforward and
efficient communication channels. As a result, Rödl & Partner is able to offer to multinational corporate groups one worldwide documentation concept from a single source
with a central contact person for all topics.
Implementation of a documentation concept
11
United Arab Emirates
BEPS Action 13 state of implementation in selected countries
World
Implemented Partially implemented Implementation expected No implementation
China
Brazil
EU countries
India
Indonesia
Kazakhstan
Kenya
Mexico
Georgia
Russia
Singapore
Thailand
South Africa
USA
Vietnam
12
Implemented Partially implemented Implementation expected No implementation
Czech Republic
Finland
Belarus
BEPS Action 13 state of implementation in selected countries
Europe
Bulgaria
Croatia
Estonia
France
Austria
Serbia
Hungary
Germany
Italy
Latvia
Lithuania
Netherlands
Poland
Romania
Sweden
Switzerland
Slovakia
Spain
Turkey
Ukraine
United Kingdom
Cyprus
13
Implementation Action 13
Austria
Master File Local File CbCR
» Obligation to prepare the Master File, if:
» Turnover exceeds the amount of 50 million
Euro for two consecutive years, or
» If another group entity must prepare a
Master File
» Submission deadline after request: Within 30 days
» Penalties: Up to 5.000 Euro for noncompliance
» Obligation to prepare the Local File, if turnover
exceeds the amount of 50 million Euro for two
consecutive years.
» Filing requirements are identical as for Master File
» For turnover falling below the threshold, transfer
pricing documentation must be prepared based on
the general rules.
» Penalties: Up to 5.000 Euro for noncompliance
» CbCR has been implemented.
» Requirement: Annual consolidated group revenue of
at least 750 million Euro
» Submission deadline: Within 12 months after fiscal
year’s end
» Surrogate filing: Has been implemented
» Penalties: Up to 50.000 Euro for noncompliance
with CbCR
» Duty of notification: By the end of the fiscal year,
corporate entities impacted by CbCR have to be
announced
» Austria is a signatory of the Multilateral Competent
Authority Agreement on the Exchange of CbC
Reports (the ”MCAA CbC”).
Effective in law for fiscal years from 1 January 2016
14
Implementation Action 13
Belarus
Master File Local File CbCR
» The Master File concept has not been implemented and implementation is not expected in the near future.
» However, the Commission of the Eurasian Union has declared readiness to accept OECD concepts, such as
the concepts outlined in Action 13. In general, it is anticipated that Belarus will take similar steps as its main
economic counterpart Russia, albeit with a time lag.
» Nevertheless, taxpayers are required to notify the tax authorities about controlled transactions and are obliged
to provide documentation upon request by the tax authorities.
» CbCR has not been implemented in Belarus so far.
» It is expected that the anticipated implementation
of CbCR in Russia will accelerate the progress in
Belarus.
15
Implementation Action 13
Brazil
Master File Local File CbCR
» The implementation of the Master File concept according to BEPS Action 13
is not expected.
» The CbCR has been implemented for calendar years 2016 and after.
» Requirements:
» Enterprises with total consolidated revenue of more than 2.26 billion
Brazilian Real, if the controlling company is Brazilian; or
» Consolidated revenue of more than 750 million Euro if the parent company
is located abroad
» Submission deadline: CbCR shall be disclosed annually through a Module
(Bloco W) of the Brazilian Annual Corporate Income Tax Return (”ECF”) no
later than the last business day of July each year.
» Surrogate filing: Has been implemented
» Secondary filing: Has been implemented
» Penalties: Transactions and financial operations that are not fully reported in
CbCR can trigger a penalty of up to 3 % of the amount of the transactions
» Duty of notification: No later than the last business day of July each year
» Brazil is a signatory of the Multilateral Competent Authority Agreement on
the Exchange of CbC Reports (the ”MCAA CbC”).
Effective in law for fiscal years from 1 January 2016
16
Implementation Action 13
Bulgaria
Master File Local File CbCR
» The Implementation of the Master File concept according to BEPS Action 13
has not been undertaken.
» Draft law regarding the implementation of CbCR is available.
» Requirements:
» Ultimate parent of the group is a tax resident in Bulgaria and the annual
consolidated group revenue exceeds 100 million Lew (approx. 51 million
Euro) for the fiscal year prior the reporting year or
» Ultimate parent of the group that is not a tax resident in Bulgaria and the
annual consolidated group revenue exceeds 1.466.872.500 Lew (750 million
Euro) for the fiscal year prior to the reporting year.
» Submission deadline: Within 12 months after the conclusion of the reporting year
» Surrogate filing: Has been implemented
» Penalties:
» No report submitted (up to 200.000 Lew)
» Submission of incomplete or incorrect data (up to 150.000 Lew)
» Duty of notification: By the end of the reporting year
Draft law available
17
China
Master File Local File CbCR
» Implementation of the Master File concept will be
carried out.
» Obligation to prepare the Master File if:
» The cross-border related party transactions
and the group to which the enterprise
belongs has already prepared a Master File.
» Or the total cross-border related party
transactions exceed 1 billion Renminbi
» Deadline for preparing the Master File: Within
12 months after the conclusion of the reporting
fiscal year
» Submission deadline after request: Within 30 days
» Penalties: Noncompliance (10.000 Renminbi)
» Duty of notification concerning CbCR even if the
Chinese enterprise is not obligated to file CbCR.
» Implementation of the Master File concept will be
carried out.
» Obligation to prepare the Local File if:
» Transfers of tangible assets exceed
200 million Renminbi
» Transfers of financial assets or transfer of
ownership of intangible assets exceed
100 million Renminbi
» All other related party transactions exceed
40 million Renminbi.
» Deadline for preparing the Local File: No later than
30 June following the tax year
» Submission deadline after request: Within 30 days
» The Chinese Local File rules contains components
that exceed the requirements of BEPS
» CbCR has been implemented.
» Requirements: Ultimate holding company of a MNE
and the group with an annual consolidated group
revenue of at least 5.5 billion Renminbi
» Submission deadline: May 31 of the subsequent
year within the corporate income tax return by
a specific form
» Surrogate filing: Has been implemented
» Penalties: 10.000 Renminbi - 50.000 Renminbi
» Duty of notification: In conjunction with the form
on related party transactions
» China is a signatory of the Multilateral Competent
Authority Agreement on the Exchange of CbC
Reports (the ”MCAA CbC”).
Effective in law for fiscal years from 1 January 2016
Implementation Action 13
18
Master File Local File CbCR
» Croatia is a participating member of an inclusive framework that brings together
more than 100 countries and jurisdictions to collaborate on the implementation
of the OECD / G20 Base Erosion and Profit Shifting (BEPS) Package.
» The implementation of the Master File concept according to BEPS Action 13
is expected.
» CbCR according to BEPS Action 13 is already implemented.
» Requirements: MNEs headquartered in Croatia with total consolidated group
revenue of at least 750 million Euro are required to file the CbC report
» Threshold: Annual consolidated group revenue of at least 750 million Euro
» Submission deadline: Within 12 months from the last day of the tax year for
which the report is submitted
» Surrogate filing: Has not been implemented yet
» Secondary filing: Has not been implemented yet
» Penalties: From 270 to 27.000 Euro
» Duty of notification: No
Effective in law for fiscal years from 1 January 2016
Implementation Action 13
Croatia
19
Cyprus
Implementation Action 13
Master File Local File CbCR
» There is no legislation on the implementation of the Master File concept according
to BEPS Action 13.
» The tax authorities have not yet issued any guidance on the implementation
of the Master File and Local File. However, in practice it is anticipated that the
tax authorities will apply the OECD guidelines.
» CbCR according to BEPS Action 13 has been implemented.
» Requirements: Ultimate parent entity of a MNE group generating consolidated
annual turnover exceeding 750 million Euro
» Submission deadline: Within 12 months after the conclusion of the reporting
financial year
» Surrogate filing: Has been implemented
» Penalties: At this stage there is no indication of the level of penalties.
It is expected to be effective as required by the EU Directive
» Duty of notification: Should be submitted before the end of each financial year.
First notifications should be made by 20 October 2017
» Cyprus is a signatory of the Multilateral Competent Authority Agreement on
the Exchange of CbC Reports (the ”MCAA CbC”).
Effective in law for fiscal years from 1 January 2016
20
Implementation Action 13
Master File Local File CbCR
» There has been no implementation of the Master File concept into national law
to date, however it is recommended by internal and external regulations of the tax
authorities to follow the OECD-Guidelines with regards to the Master File concept.
» During tax audits both files are typically requested by the tax authorities.
» Draft law is published, implementation is expected on 5 June 2017
» Regulations according to the draft law are as follows:
» Requirement: Annual consolidated group revenue of at least
750 million Euro
» Submission deadline: Within 12 months after the conclusion of the
reporting fiscal year
» Surrogate filing: Has been implemented
» Secondary filing: Has been implemented
» Penalties: Up to 3 million Czech Koruna
» Duty of notification:
» In general: At the end of the financial year
» Exemption for the first year of implementation (2016):
Tax authorities have to be notified about the reporting
parent entity of group until the 30 September 2017
» Czech Republic is a signatory of the Multilateral Competent Authority Agreement
on the Exchange of CbC Reports (the ”MCAA CbC”).
Expected to be effective for fiscal years for 1 January 2016
Czech Republic
21
Estonia
Implementation Action 13
Master File Local File CbCR
» Since 2007, Estonia has a similar Master File concept that closely follow the
prior OECD documentation guidelines.
» CbCR has not been implemented into national law.
» A draft law regarding CbCR has been approved by the government,
but not by the parliament.
» The regulations according to the draft law are as follows:
» Requirement: Annual consolidated group revenue of at least
750 million Euro
» Submission deadline: Within 12 months after the conclusion of
the reporting fiscal year
» Surrogate filing: Will be implemented
» Duty of notification: Within 6 months after the financial year
» Estonia is a signatory of the Multilateral Competent Authority Agreement on the
Exchange of CbC Reports (the ”MCAA CbC”).
Draft law available
22
Implementation Action 13
Master File Local File CbCR
» Master File concept according to BEPS Action 13 is implemented.
» Implementing Act: Section 14b § of the Tax Assessment Act
(”Laki Verotusmenettelystä”)
» Filing threshold:
» Number of employees at least 250 or
» Net turnover over 50 million Euro or balance-sheet total over
43 million Euro and
» Company fulfills the criterion set in Commission Reccomendation
2003 / 361 / EC (”SME”) and
» Amount of intra-group transactions during the fiscal year over 500.000 Euro
» Deadline for preparing the Master File: At the earliest 6 months after the end of
fiscal year
» Submission deadline after request: Within 60 days
» Penalties: Punitive tax up to 25.000 Euro
» For the Local File, there are the same stipulations in place as for the Master File
(thresholds, deadlines, penalties, etc).
» CbCR according to BEPS Action 13 is implemented.
» Relevant Law: Section 14d § and 14e § of the Tax Assessment Act
(”Laki Verotusmenettelystä”)
» Requirements: Parent entity of a MNE group and a foreign company having
a PE in Finland for CIT purposes
» Threshold: Annual consolidated group revenue of at least 750 million Euro
» Submission deadline: Within 12 months after the end of the fiscal year
» Surrogate filing: Has been implemented
» Secondary filing: Has been implemented
» Penalties: Punitive tax increase up to 25.000 Euro
» Duty of notification: By the end of the fiscal year with extension until 31. May
2017 for fiscal years ending prior to 31. May 2017
» Finland is a signatory of the Multilateral Competent Authority Agreement on
the Exchange of CbC Reports (the ”MCAA CbC”).
Effective in law for fiscal years from 1 January 2017 Effective in law for fiscal years from 1 January 2016
Finland
23
France
Implementation Action 13
Master File Local File CbCR
» There are presently no plans for an implementation of the OECD Master File
concepts since an equivalent local concept already exists.
» CbCR according to BEPS Action 13 is implemented.
» Requirement: Annual consolidated group revenue of at least 750 million Euro
» Submission deadline: Within 12 months after the conclusion of the reporting
fiscal year
» Surrogate filing: Has been implemented
» Duty of notification: In connection with the corporate income tax return
» Penalties: Noncompliance with CbCR and notification requirements
(up to 100.000 Euro)
» France is a signatory of the Multilateral Competent Authority Agreement
on the Exchange of CbC Reports (the ”MCAA CbC”).
Effective in law for fiscal years from 1 January 2016
24
Implementation Action 13
Georgia
Master File Local File CbCR
» Since 14 June 2016, Georgia is a participating member of the inclusive framework
that brings together over 100 countries and jurisdictions to collaborate on the
implementation of the OECD / G20 Base Erosion and Profit Shifting (BEPS) Package.
» The implementation of the Master File concept according to BEPS Action 13 is
expected for future.
» Implementation of CbCR according to BEPS Action 13 is expected.
» Georgia is a signatory of the Multilateral Competent Authority Agreement on
the Exchange of CbC Reports (the ”MCAA CbC”).
25
Germany
Implementation Action 13
Master File Local File CbCR
» Master File concept according to BEPS Action 13 is implemented with slight
modifications into German law.
» Requirements for Master File: Revenue of at least 100 million Euro in the
previous year
» Requirements for Local File:
» Flow of goods: 6 million Euro
» Other transactions: 600.000 Euro
» Submission deadline: Within 60 or 30 days upon request, no submission required
with the annual tax return
» Nature, content and extent are determined in the ordinance
» Penalties:
» Tax administration can estimate the revenues (shift of burden of proof
to the taxpayer)
» No submission or inadequate documentation: Penatly of minimum 5 %
up to maximium 10 % of the revenue correction; minimum 5.000 Euro
» Late submission: Penalty of 100 Euro / day (maxmimum 1 million Euro)
» §138a AO: Implementation of CbCR
» Requirement: Annual consolidated group revenue of at least 750 million Euro
» Evaluation and storage of the data for 15 years
» Submission deadline: Within 12 months after the conclusion of the reporting
fiscal year
» Surrogate filing: Has been implemented
» Secondary filing: Has been implemented
» Penalties: Noncompliance with CbCR and notification requirements
(up to 10.000 Euro)
» Duty notification: Submission with the annual tax return
» Germany is a signatory of the Multilateral Competent Authority Agreement
on the Exchange of CbC Reports (the ”MCAA CbC”).
Obligation to prepare for fiscal years from 1 January 2017 From 1 January 2016
26
Implementation Action 13
Hungary
Master File Local File CbCR
» To a large extent, Hungary has aligned its documentation requirements with the
OECD Master File concept according to Chapter 5 (OECD GL, 2010) beginning
2015.
» The Master File concept according to BEPS Action 13 has not yet been adopted.
Nevertheless, implementation is expected.
» CbCR according to BEPS Action 13 has not been implemented.
» Hungary is a signatory of the Multilateral Competent Authority Agreement
on the Exchange of CbC Reports (the ”MCAA CbC”).
27
India
Implementation Action 13
Master File Local File CbCR
» The Master File concept was implemented with an
effective date of 1 April 2016.
» Detailed regulations remain open.
» Threshold: There are no thresholds prescribed.
» Deadline for preparing the Master File: The form and
the due date for preparation of the Master File for
the period covering the financial year 2016-17 is
not yet prescribed.
» Submission deadline after request: Since the Master
File is to be submitted with the prescribed authority,
the mechanism for request of the Master File by the
Tax Officer is not yet specified (expected to be the
30 November of the following FY; same as Local File
requirements).
» Penalties: Non-furnishment of the Master File
(500.000 Indian Rupee)
» Local File requirements in the Indian TP Law were
introduced in 2001 and are already broadly in line
with BEPS Action 13.
» Filing threshold: Aggregate value of international
transactions exceeding 10 million Indian Rupee.
» Deadline for preparation: Contemporaneous by due
date of filing of the Income Tax Return i.e. by 30
November 2017 (for FY 2016-17).
» Submission deadline after request: Within 30 days,
with the ability to extend for an additional 30 days.
» Penalties: Non-maintenance, non-reporting or
non-furnishing to the Tax Officer (2 % of the value
of international transactions)
» The Finance Act 2016, introduced CbCR in India effective
for financial years beginning on or after 1 April 2016.
» Expected Threshold: Annual consolidated group
revenue of at least 750 million Euro or 53.950 million
Indian Rupee
» Submission deadline: The filing of CbCR is required
by the due date of filing of the return of income i.e.
by 30 November 2017 (for FY 2016-17).
» Surrogate filing: Has been implemented
» Secondary filing: Has been implemented
» Penalties:
» Non-furnishment of CbCR
(5.000 Indian Rupee - 15.000 Indian Rupee
per day)
» If the non-furnishment continues
(50.000 Indian Rupee per day)
» Inaccurate CbCR information
(500.000 Indian Rupee)
» Duty of notification: Details are not published yet.
» India is a signatory of the Multilateral Competent
Authority Agreement on the Exchange of CbC
Reports (the ”MCAA CbC”).
Effective from 1 April 2016 Effective since 1 April 2001 Effective from 1 April 2016
28
Implementation Action 13
Indonesia
Master File Local File CbCR
» The Master File concept according to BEPS Action 13 is already implemented.
» Requirements:
» Annual gross turnover in the previous year exceed 50 billion Indonesian
Rupiah (if the tax payer has operated for less than 12 months, the turnover
should be annualized)
» Annual related party transactions in the previous year exceed:
» 20 billion Indonesian Rupiah for transactions involving transfer
of tangible goods
» 5 billion Indonesian Rupiah for each transaction such as services,
interest payments, intangibles or other transactions that are
defined as high risk transactions
» the related party is domiciled in a country or jurisdiction with a corporate
income tax rate lower than the Indonesian corporate income tax rate
» Deadline for preparing the Master File and Local File: By the fourth month
following the end of a tax year
» Submission deadline after request: Within 14 days; the summary of the files
shall be attached with the Annual Corporate Income Tax Return
» Penalties: Failing to submit as an attachment to the Corporate Income Tax Return
(1.000.000 Indonesian Rupiah)
» The CbCR concept according to BEPS Action13 is already implemented.
» Submission deadline: Within 12 months after the conclusion of the reporting
fiscal year; must be submitted to the DGT as an attachment Annual Corporate
Income Tax Return
» Penalties: Failing to submit as an attachment to the Corporate Income Tax Return
(1.000.000 Indonesian Rupiah)
» Indonesia is a signatory of the Multilateral Competent Authority Agreement on
the Exchange of CbC Reports (the ”MCAA CbC").
Effective in law for fiscal years 2016
29
Italy
Implementation Action 13
Master File Local File CbCR
» The Master File concept outlined by BEPS Action 13 has not yet been implemented
in local law.
» Implemented per decree dated 23 February 2017.
» Requirements: Part of an MNE with annual consolidated group revenue of at
least 750 million Euro
» Threshold: Annual consolidated group revenue of at least 750 million Euro
» Submission deadline: Within 12 months after the closing of a fiscal year for which
CbCR has to be prepared
» Surrogate filing: Italian subsidiaries controlled by a foreign company which is
resident in a country where CbC filing requirements have not been implemented,
or in a country that does not carry out an actual exchange of CbCR with Italy.
» Penalties: 10.000 Euro to 50.000 Euro per company
» Duty of notification: Within the annual tax declaration (valid for Italian parent
company and for Italian subsidiaries)
» Italy is a signatory of the Multilateral Competent Authority Agreement on the
Exchange of CbC Reports (the ”MCAA CbC”).
Effective in law for fiscal years from 1 January 2016
30
Implementation Action 13
Kazakhstan
Master File Local File CbCR
» Kazakhstan is not an OECD member.
» Kazakhstan is a participating member in the inclusive framework that brings
together over 100 countries and jurisdictions to collaborate on the implementation
of the OECD / G20 Base Erosion and Profit Shifting (BEPS) Package.
» If a Kazakhstan parent MNE has a subsidiary or member firm in countries with
requirements to maintain the three tiered transfer pricing documentation, the
MNE may have to prepare and file the Master File and the Local File.
» CbCR according to BEPS Action 13 has been implemented.
» Requirements: Annual consolidated group revenue of at least 750 Million Euro
(254.612.334.973,00 Tenge)
» Submission deadline: Within 12 months after the conclusion of the financial year
» Surrogate filing: Has been implemented
» Penalties: Up to 26.630 Euro (9.038.400 Tenge)
» Duty of notification: Notification should be provided until 15 May
» Kazakhstan is not yet a signatory of the Multilateral Competent Authority
Agreement on the Exchange of CbC Reports (the ”MCAA CbC”).
31
Kenya
Implementation Action 13
Master File Local File CbCR
» The Master File concept according to BEPS Action 13 hasn‘t been implemented
in Kenya yet.
» It is anticipated that the KRA (Kenya Revenue Authority) will implement the
Master File approach soon.
» The implementation of CbCR according to BEPS Action 13 is expected.
» Current transfer pricing legislation refers only to related party documentation
requirements.
» Kenya is not yet a signatory of the Multilateral Competent Authority Agreement
on the Exchange of CbC Reports (the ”MCAA CbC”).
32
Implementation Action 13
Latvia
Master File Local File CbCR
» Implementation of the Master File concept according to BEPS Action 13
is expected, but no specific terms have been established to date.
» Latvia has local documentation requirements that have to be submitted within
a month after being requested by the taxing authority.
» Implementation of CbCR according to BEPS Action 13 is expected. But no certain
terms have been set.
» Latvia is a signatory of the Multilateral Competent Authority Agreement on the
Exchange of CbC Reports (the ”MCAA CbC”).
33
Lithuania
Implementation Action 13
Master File Local File CbCR
» The Master File concepts according to BEPS Action 13 is not implemented yet.
» As Lithuania is participating in the inclusive framework to collaborate on the
implementation of the OECD / G20 Base Erosion and Profit Shifting (BEPS)
Package with its members, the Lithuanian taxing authority’s recommendation
is to follow the OECD documentation guidelines.
» CbCR has not been implemented in Lithuania to date.
» However, there is a draft of the amendment to the Law on the Tax Administration
(Article 61) that is being discussed in the Lithuanian Parliament.
» Requirement: Annual consolidated group revenue of at least 750 million Euro
» Submission deadline: Within 12 months after the conclusion of the reporting
fiscal year
» Penalties: Up to 300 Euro for noncompliance with CbCR and notification
requirements; in case of the repeated infringements up to 600 Euro
» The details of the reporting procedure will have to be established by the central
tax administrator.
» Lithuania is a signatory of the Multilateral Competent Authority Agreement on
the Exchange of CbC Reports (the ”MCAA CbC”).
Draft law available
34
Implementation Action 13
Mexico
Master File Local File CbCR
» The Master File concept according to BEPS Action 13 is already implemented and
was included in the Mexican Income Tax Law in fiscal year 2016.
» For instance, the concept is applicable for:
» Mexican companies with income of at least 644.599.004 Mexican Peso and
» Companies who are members of the optional tax regime for company
groups and PE’s of foreign residents.
» Deadline for preparing the Master File: 31 December of the following year to the
one to which the Master File corresponds.
» Penalties: Ranging from 140.540 Mexican Peso to 200.090 Mexican Peso for not
filing the Master File or filing an incomplete Master File, i.e. a Master File with
mistakes or inconsistencies.
» The implementation of CbCR concept according to BEPS Action 13 is already
implemented.
» It is applicable for:
» Mexican companies with income of at least 644.599.004 Mexican Peso and
» Companies who are members of the optional tax regime for company groups
and PE’s of foreign residents.
» Requirements: Annual consolidated income in the previous year amounts to
12.000.000.000 Mexican Peso or more
» Submission deadline: 31 December of the following year to the one to which
the Master File corresponds.
» Surrogate filing: Has been implemented
» Penalties: From 140.540 Mexican Peso to 200.090 Mexican Peso for not filing
the Master File or filing an incomplete Master File, i.e. a Master File with mistakes
or inconsistencies.
» Mexico is a signatory of the Multilateral Competent Authority Agreement on the
Exchange of CbC Reports (the ”MCAA CbC”).
Effective for fiscal years from 1 January 2016
35
Netherlands
Implementation Action 13
Master File Local File CbCR
» Master File and Local File obligations according to BEPS Action 13 are
implemented as of 2016.
» The recommendations of the OECD are followed.
» Threshold: Master File and Local File apply to MNEs with annual consolidated
group revenue of at least 50 million Euro.
» Deadline for preparing the Master File and Local File:
» No active filing required, document should be present in the administrative
files of the tax payer by the filing deadline of the CIT-return.
» In case of a tax audit this documentation should be provided immediately.
» In practice, a grace period of 4 weeks is granted.
» Penalties: If documentation is not available at an tax audit, the burden of proof
shifts from the tax inspector to the taxpayer.
» Local transfer pricing documentation must be applied in addition to obligations
arising under BEPS action 13.
» CbCR according to BEPS Action 13 is implemented as per 2016.
» Requirements: Ultimate parent company of multinational group with annual group
turnover exceeding 750 million Euro
» Submission deadline: Within 12 months after the conclusion of the reporting
fiscal year
» Surrogate filing: Has been implemented
» Secondary filing: Has been implemented
» Penalties: Criminal fines up to 20.250 Euro or up to 4 years imprisonment and
additionally in all cases shift of burden of proof
» Duty of notification:
» Ultimately before end fiscal year
» Exception for fiscal year 2016, due date 1 September 2017
» Notification via electronical portal (not yet available).
» Based on current legislative proposal the penalties outlined above will
also apply on the notification duty
» Netherlands is a signatory of the Multilateral Competent Authority Agreement
on the Exchange of CbC Reports (the ”MCAA CbC”).
Effective for fiscal years from 1 January 2016
36
Implementation Action 13
Poland
Master File Local File CbCR
» The Master File concept according to BEPS Action 13
has been implemented.
» Obligation to prepare Master File, if last year's
revenues or expenses of the taxpayer exceeded
20 million Euro
» Deadline for preparing and attaching to the Local File:
» Up to the deadline for filing an annual tax
return by the associated enterprise which has
prepared the information on the associated
group (i.e. Master File)
» No submission with the annual tax return
» Submission deadline after request by the tax
authorities: Within 7 days
» Penalties:
» No or defective documentation: A penalty rate
of 50 % of the difference between the income
declared by the taxpayer and the income
assessed by the tax authorities.
» Sanctions under the Penal Fiscal Code possible
(e.g. management board members, persons in
charge for accounting / tax returns)
» The Master File concept according to BEPS Action 13
has been implemented.
» Obligation to prepare the local file, among other
things if:
» Previous year's revenues or expenses of the
taxpayer exceeded 2 million Euro (obligation
to prepare local file for two subsequent years),
» Materiality of the transaction or another event
(the minimum threshold of 50.000 Euro, the
threshold increases depending on the revenue
level).
» Receivables paid to a tax haven > 20.000 Euro
» Deadline for preparing the local file: Equal to the
deadline for the filing the annual tax return
» Submission deadline after request by the tax
authorities:
» 7 days – for material transactions
» 30 days – for immaterial transactions indicated
by the inspectors
» Penalties: The same as in the case of the Master File
» CbCR according to BEPS Action 13 has been
implemented.
» Currently applied to only domestic holding
companies, not being a subsidiary in the meaning
of the accounting regulations
» Requirement: Annual consolidated group revenue
of at least 750 million Euro
» Submission deadline: Within 12 months after the
conclusion of the reporting fiscal year
» Surrogate and secondary filling: Planned
implementation, legislative process underway
» Penalties: Legislative process underway
» Duty of notification: Legislative process underway
» Poland is a signatory of the Multilateral Competent
Authority Agreement on the Exchange of CbC
Reports (the ”MCAA CbC”).
Effective for fiscal years from 1 January 2017 1 January 2016
37
Romania
Implementation Action 13
Master File Local File CbCR
» The Master File approach according to BEPS Action 13 has not been incorporated
in local law yet, but efforts to introduce it within the next year are currently
in process.
» Implementation of CbCR is anticipated, starting with 31 December 2018.
» Romania is not yet a signatory of the Multilateral Competent Authority
Agreement on the Exchange of CbC Reports (the ”MCAA CbC”).
38
Implementation Action 13
Russia
Master File Local File CbCR
» The Master File concept according to BEPS Action 13 has not been implemented yet.
» However, there is a draft bill that contains requirements for the preparation of
documentation for multinational enterprises in accordance with the BEPS Action
13 regulations. The recommendations of the OECD are essentially followed
(nature, content and extent are determined in the ordinance).
» Currently, there is no obligation in Russia to prepare and submit a Master File and
Local File for Russian MNEs.
» Requirement: Annual consolidated group revenue of at least 50 billion Russian
Ruble for the period prior to the reporting period
» Filing threshold: Limit for Master File and Local File has not been set yet
» Submission deadline after request: Within 3 months, but not earlier than 15
months after the end of the respective reporting year
» Penalties: Fine of 100.000 Russian Ruble for unlawful failure to file each required
document
» Master File and Local File are to be filed with the tax authority in electronic form
and may be compiled in free form in accordance with the legal requirements.
» Master File is filed only by the holding company or an entity authorized by the
holding company.
» Addition: Annual notification on affiliation with corporate group
» CbCR according to BEPS Action 13 has not been implemented yet.
» There is presently a draft bill proposing the implementation of CbCR
» Requirement: Annual consolidated group revenue of at least 50 billion Russian
Ruble for the period prior to the reporting period
» Submission deadline: Within 12 months of the end of the reporting financial year
» Penalties: Fine of 100.000 Russian Ruble for unlawful failure to file each of
documents
» Country report is to be filed with the tax authority electronically in the
prescribed form.
» Addition: Is filed only by the holding company or an entity authorized by the
holding company
» Russia is a signatory of the Multilateral Competent Authority Agreement on
the Exchange of CbC Reports (the ”MCAA CbC”).
Draft law available; Date to be entered into force unknown
39
Serbia
Implementation Action 13
Master File Local File CbCR
» Implementation of the Master File concept according to BEPS Action 13
is expected.
» Currently no bill for such implementation has been drafted.
» Implementation of CbCR according to BEPS Action 13 is expected.
» Serbia is not yet a signatory of the Multilateral Competent Authority Agreement
on the Exchange of CbC Reports (the ”MCAA CbC”).
40
Implementation Action 13
Singapore
Master File Local File CbCR
» The Inland Revenue Authority of Singapore (”IRAS”) has not adopted the Master
File concept according to BEPS Action 13.
» However, the existing guidance on transfer pricing documentation expects
Singapore taxpayers to include group level and entity level information in their
transfer pricing documentation.
» Singapore will implement CbCR for Singapore MNE groups from the fiscal year
2017 onwards.
» Requirements: CbCR will be required for a MNE group in relation to a fiscal year,
if all of the following conditions are met:
» The MNE group is a Singapore MNE group,
» The consolidated group revenue in the preceding fiscal year is at least
1.125 million Singapore Dollar and
» The MNE group has subsidiaries or operations in at least one foreign
jurisdiction.
» Threshold: The consolidated group revenue in the preceding fiscal year is at least
1.125 million Singapore Dollar.
» Submission deadline: Within 12 months from the end of the fiscal year.
» Surrogate filing: Not implemented
» Penalties:
» Late filing or failing to file CbCR (up to 1.000 Singapore Dollar and
imprisonment for up to 6 months)
» False / misleading CbC information (up to 10.000 Singapore Dollar and
imprisonment for up to 2 years)
» Duty of notification: Not implemented
Effective in law for fiscal years from 1 January 2017
41
Slovakia
Implementation Action 13
Master File Local File CbCR
» The Master File concept according to BEPS Action 13 hasn’t been implemented to
date but implementation is expected.
» Duty to provide documentation in terms of national regulations is given
(Regulation of the Ministry of Finance on the Transfer Pricing Documentation).
This duty corresponds partially with the implemented BEPS Action 13.
» Implementation of CbCR according to BEPS Action 13 via Act No. 442 / 2012 Coll.
» Requirement: Annual consolidated group revenue of at least 750 million Euro in
the previous year
» Legal effectiveness:
» Business years from 1 January 2016 for Ultimate Parent Entities with a tax
residence in Slovakia and
» From 1 January 2017 for Constituent Entities with a tax residence in Slovakia
(in case these entities are subject to reporting)
» Submission period: Within 12 months after the conclusion of the fiscal year
» Surrogate filing: Has been implemented
» Secondary filing: Has been implemented
» Penalties:
» In case of non-observing the CbCR (up to 10.000 Euro)
» In case of a breach of the duty of notification (up to 3.000 Euro)
» Duty of notification: In connection with the tax return
» Slovakia is a signatory of the Multilateral Competent Authority Agreement on
the Exchange of CbC Reports (the ”MCAA CbC”).
As of 1 January 2016 / 1 January 2017
42
Implementation Action 13
South Africa
Master File Local File CbCR
» The South African Regulations currently do not make any explicit reference to the
Master File and Local File transfer pricing documentation approach recommended
by the OECD as part of Action Plan 13.
» There is an intention to implement the Master File concept in the near future.
» There are however separate additional transfer pricing documentation
requirements (similar to the Master File concept) in place already.
» The CbCR according to BEPS Action 13 is already implemented since
1 January 2016.
» Requirement: Annual consolidated group revenue of at least 10 billion Rand
or 750 million Euro
» Deadline for preparing the CbCR: Within 12 months after the end of the
reporting financial year of the MNE
» Penalties: Not specified yet but normal penalty rules apply (in terms of Tax
Administration Act)
» Duty of notification:
» Any Constituent Entity of an MNE group that is resident for tax purposes
in South Africa must notify SARS if it is the Ultimate Parent Entity or the
Surrogate Parent Entity, no later than 12 months after the last day of the
Reporting Fiscal Year of such MNE
» Where the Constituent Entity is not the Ultimate Parent Entity nor the
Surrogate Parent Entity, it must notify SARS of the identity and tax residence
of the Reporting Entity, no later than 12 months after the last day of the
Reporting Fiscal Year of such MNE group
» South Africa is a signatory of the Multilateral Competent Authority Agreement
on the Exchange of CbC Reports (the ”MCAA CbC”).
Effective for fiscal years from 1 January 2016
43
Spain
Implementation Action 13
Master File Local File CbCR
» The Master File and Local File have been partially implemented pursuant to
BEPS Action 13.
» Compliance degree with BEPS Action 13: Some local requirements differ from
those established in Action 13. The new regulations replaced the previous local
requirements.
» Filing threshold: Annual consolidated group revenue of at least 45 million Euro
as of fiscal year 2016.
» Deadline for preparing the Master File and Local File: Within 6 months and 25
days after the end of the fiscal year.
» Submission deadline after request: The documentation should be at the Tax
Authorities’ disposal. Therefore, either immediate delivery or on date set by
the Tax Authority.
» Penalties:
» A fixed amount of 1.000 Euro / data and 10.000 Euro / group of data up
to a maximum amount of the lesser of 10 % of all transactions or 1 %
of turnover for incomplete documentation (lack of submission, incomplete
submission or submission containing false information).
» In case of TP adjustments with incomplete documentation, a penalty of
15 % of the adjusted amount will be imposed.
» Duty of notification: Information on related party transactions in the tax return
(”Modelo 200”).
» CbCR is implemented in Spain for financial years on or after the 1 January 2016.
» Threshold: Annual consolidated group revenue of at least 750 million Euro.
» Submission deadline: Within 12 months after end of the reporting fiscal year
» Penalties: No specific penalties. However, non-submission or those with incorrect
data will be sanctioned pursuant to General Tax Law.
» Duty of notification: All Spanish resident entities or PE's which form part of a
group with turnover in excess of 750 million Euro must notify before the end of
each fiscal year. A special tax form is available for this purpose.
» Spain is a signatory of the Multilateral Competent Authority Agreement on the
Exchange of CbC Reports (the ”MCAA CbC”).
Effective for fiscal years beginning as of 1 January 2016 (partly as of 2015)
44
Implementation Action 13
Sweden
Master File Local File CbCR
» Sweden has had previous legislation on transfer pricing. New legislation was
introduced in order to implement the Master File concept pursuant to BEPS
Action 13. Legislation was also expanded to include Swedish partnerships, foreign
companies with a permanent establishment in Sweden and Swedish companies
with a permanent establishment abroad.
» Filing threshold:
» > 250 employees and
» > 450 million Swedish Krona turnover or > 400 million Swedish Krona
balance sheet total
» Both of tests are applied to the preceding tax year in question
» Deadline for preparing the Master / Local File: Date of filing for corporate income
tax return, which is dependent on financial year. Filing not compulsory, but should
instead be submitted to the Swedish Tax Agency upon request.
» Submission deadline after request: Not established yet
» Penalties: Conditional fine for non-compliance with filing. Tax surcharge regarding
corporate income tax return.
» Duty of notification: No duty of notification is entailed in the present proposal,
but further instructions by the Swedish Tax Agency are to be issued.
» New legislation implementing CbCR
» Requirements: Ultimate parent companies of multinational groups, Swedish
subsidiaries if parent company obligated to file.
» Threshold: Annual consolidated group turnover of at least 7 billion
Swedish Krona.
» Submission deadline: 12 months after the end of the fiscal year
» Surrogate filing: Outlined in legislation
» Secondary filing: Outlined in legislation
» Penalties: Conditional fine for non-compliance with filing report
» Duty of notification:
» Yes, before end of fiscal year.
» For fiscal years starting after 31 December 2015 and ending before
1 April 2017 notification should be given before 30 April 2017
» Sweden is a signatory of the Multilateral Competent Authority Agreement on
the Exchange of CbC Reports (the ”MCAA CbC”).
Obligation to prepare for fiscal years beginning in 2017 From 1 January 2016
45
Switzerland
Implementation Action 13
Master File Local File CbCR
» Switzerland has currently shown the intention to implement the Master File
concept.
» As was the case before BEPS, there will be most likely no formal law implemented,
but only a general reference in a circular letter to the OECD Transfer Pricing
Guidelines. There is no further information regarding this issue available currently.
» Implementation expected for fiscal years from 1 January 2018 onwards.
» Requirement: Annual consolidated group revenue of at least 900 million Swiss Franc.
» Submission deadline:
» Within 12 months after the conclusion of the reporting fiscal year
» A Swiss ultimate holding company may voluntarily submit the CbCR
before 2018
» Notification: Until 31 December of the respective reporting period
» Surrogate filing: Has been implemented
» Secondary filing: Has been implemented
» Penalties: Up to 250.000 Swiss Franc
» Duty of notification: By the end of the fiscal year from 2018 onwards
» Switzerland is a signatory of the Multilateral Competent Authority Agreement on
the Exchange of CbC Reports (the ”MCAA CbC”).
Expected to be effective for fiscal years from 1 January 2018
46
Implementation Action 13
Thailand
Master File Local File CbCR
» There are no plans at present for implementation of the OECD Master File concept
into local law.
» Even a local law on TP documentation filing requirements in Thailand has not yet
been enacted. A draft law has been in discussion since the middle of 2015.
» To date, there are no plans for implementation of the CbCR requirements
according to BEPS Action 13 into local law.
» Thailand is not yet a signatory of the Multilateral Competent Authority Agreement
on the Exchange of CbC Reports (the ”MCAA CbC”).
47
Turkey
Implementation Action 13
Master File Local File CbCR
» On March 2016 the Turkish Tax Administration announced a new Draft General Communiqué numbered 3 on Disguised Profit Distribution through Transfer Pricing.
As a result, Master File, Local File, and CbCR will be implemented by the end of 2017. However, the procedures will still take some time to be fully implemented and
it is unclear when the final regulations will come into force.
» Filing threshold: A Master File will be prepared by
corporate taxpayers whose assets and net turnover
are more than 250 million Turkish Lira
» Deadline for preparing the Master File: By the end
of the second month following the corporate tax
declaration submission date
» The Local File includes the preparation of three sets
of documents:
» Annual transfer pricing report,
» Transfer pricing form and
» New transaction based transfer pricing form
» Filing threshold:
» Transfer pricing form will be prepared in case
of the total transaction volume is more than
30.000 Turkish Lira
» Turkish taxpayers whose assets and net
turnover exceed 100 million Turkish Lira will
prepare the new transaction based transfer
pricing form
» Requirements: The ultimate parent companies of
multinational groups whose annual consolidated
group revenue exceed 2,37 million Turkish Lira shall
prepare a CbCR
» Submission deadline: Within 12 months after the
conclusion of the reporting fiscal year
» Turkey is not yet a signatory of the Multilateral
Competent Authority Agreement on the Exchange of
CbC Reports (the ”MCAA CbC”).
Draft law available
48
Implementation Action 13
Ukraine
Master File Local File CbCR
» The Master File concept according to OECD’s BEPS Action 13 is not implemented
and is currently not expected.
» A Local File should be prepared according to requirements of Article 39 of Tax
Code of Ukraine that are broadly in line with BEPS Action 13.
» CbCR according to OECD’s BEPS Action 13 is not implemented and is currently
not expected.
» Ukraine is not yet a signatory of the Multilateral Competent Authority Agreement
on the Exchange of CbC Reports (the ”MCAA CbC”).
49
United Arab Emirates
Implementation Action 13
Master File Local File CbCR
» The Master File, Local File and CbCR according to OECD’s BEPS Action 13 is not implemented and is currently not expected.
» UAE is not yet a signatory of the Multilateral Competent Authority Agreement on the Exchange of CbC Reports (the ”MCAA CbC”).
50
Master File Local File CbCR
» Although there has been no legislation published by the UK parliament, the
OECD-Guidelines with respect to the documentation are generally followed.
» At time, it is expected that the Master File concept will be implemented in the
near future.
» CbCR according to OECD’s BEPS Action 13 is implemented.
» Requirement: Annual consolidated group revenue of at least 750 million Euro
» Submission deadline: Within 12 months after the conclusion of the reporting
fiscal year
» Surrogate filing: Has been implemented
» Secondary filing: Has been implemented
» Penalties: Noncompliance with CbCR (300 Pound - 3.000 Pound)
» Duty of notification: Within 12 months after the conclusion of the reporting
fiscal year
» Form of notification: Not yet announced, probably via the filing of the
electronic return
» The UK is a signatory of the Multilateral Competent Authority Agreement
on the Exchange of CbC Reports (the ”MCAA CbC”).
Effective for fiscal years from 1 January 2016
United Kingdom
Implementation Action 13
51
Implementation Action 13
USA
Master File Local File CbCR
» There are no plans at present for a formal implementation of the OECD master
file concept since equivalent concepts are already present in existing tax law.
» CbCR according to OECD’s BEPS Action 13 is implemented.
» Requirement:
» Annual consolidated group revenue of at least 850 million US-Dollar
» Only applicable to US-parented multinational enterprise (MNE) groups
» Submission deadline: CbCR has to be filed on or before the due date for the
annual tax return
» Surrogate filing: Has not been implemented
» Penalties: Noncompliance with CbCR (10.000 US-Dollar - 50.000 US-Dollar)
» The USA is a signatory of the Multilateral Competent Authority Agreement on
the Exchange of CbC Reports (the ”MCAA CbC”).
Effective for fiscal years beginning on or after 30 June 2016
52
Vietnam
Implementation Action 13
Master File Local File CbCR
» The recommendations of the OECD‘s BEPS Action Plan 13 are essentially followed and is transposed into
national law under Art.10 Nr. 4a, b and annexed forms 2-4.
» Legal basis: Decree 20 / 2017 / ND_CP of 24 February 2017 (becomes effective as from 1 May 2017) – ”Guiding
transfer pricing administration to combat transfer pricing and loss of tax revenue to the state budget”
» Filing obligation: Every Vietnamese CIT payer having related party transactions
» Submission deadline: Prepare before submission date of annual tax return
» Submission deadline upon request: Within 30 working days; option of single extension of 15 days from expiry
date, stating the reasons the extension is necessary
» Exemptions from obligation to prepare transfer pricing documentation (but not the other TP regulations) include:
» Turnover below 50 billion Dong and total value of all related party transactions below 30 billion Dong
in a tax period
» Taxpayer signed APA and submits annual APA report(s)
» Turnover of less 200 billion Dong and taxpayer performs business with simple functions and applies
the following ratios of earning before interest and tax to turnover on the following respective business
activities: Distribution 5 %, production 10 %, processing 15 %
» CbCR according to OECD’s BEPS Action 13 is
implemented (Art. 10 Nr. 4c).
» Requirement: Annual consolidated group revenue
of at least 18.000 billion Dong or if ultimate parent
company is also obliged to prepare and present
a CbCR
» Submission deadline: Preparation before submission
date of annual tax return
» Vietnam is not yet a signatory of the Multilateral
Competent Authority Agreement on the Exchange
of CbC Reports (the ”MCAA CbC”).
Effective for fiscal years beginning on or after 2017
53
Country-by-Country Reporting
Notification requirements in selected countries
Countries Duty of notification End of the reporting fiscal year In the subsequent fiscal year
Austria
Belarus
Brazil
Bulgaria
China
Croatia
Cyprus First year of implementation: 20 October 2017
Czech Republic First year of implementation: 30 September 2017
Estonia
Finland First year of implementation: latest until 31 May 2017
France
Georgia
Germany
Hungary
In accordance with BEPS Action 13, Annex IV to Chapter V Country-by-Country Reporting Implementation Package, Section 3, the respective countries require notifications
to be sent to the tax administration with regard to CbC Reporting. The aim of the notification is to identify the Reporting Entity of the MNE group and to provide this
information to the tax administration. Locally, there are differences when and how the notification has to be provided.
Some countries require a notification by the end of the fiscal year other countries demand the notification within the corporate income tax return in the subsequent
year of the reporting fiscal year.
The following table provides an overview whether or not a notification is required in the respective country and the due dates to file the notification.
Notification to the tax administration
54
Country-by-Country Reporting
Notification to the tax administration
Countries Duty of notification End of the reporting fiscal year In the subsequent fiscal year
India (specification outstanding) (specification outstanding)
Indonesia
Italy
Kazakhstan
Kenya
Latvia
Lithuania
Mexico
Netherlands First year of implementation: 1 September 2017
Poland (specification outstanding) (specification outstanding)
Romania (specification outstanding) (specification outstanding) (specification outstanding)
Russia (specification outstanding) (specification outstanding)
Serbia
Singapore
Slovakia
South Africa
Spain
Sweden First year of implementation: Until 31 April 2017
Switzerland
Thailand
Turkey
Ukraine
United Arab Emirates
United Kingdom
USA
Vietnam
55
Country-by-Country Reporting
As of January 2017, there have been 57 countries that have signed the Multilateral Competent Authority agreement (“MCAA”) for the automatic exchange of Country-by-
Country (“CbC“) reports, as contemplated by Action 13 of the BEPS Action Plan.
The purpose of the MCAA CbC is to specify guidelines and rules that regulate the automatic exchange of CbCR prepared by the Reporting Entity of an MNE group and
the annual filing with the tax authorities of the jurisdiction of tax residence of that entity with the tax authorities of all jurisdictions in which the MNE group operates.
This exchange of information helps tax administrations obtain a complete understanding of how MNEs structure their operations, while also ensuring that the confidentiality
of such information is safeguarded. The exchange with jurisdictions which are not party to the MCAA CbC does not take place.
» Argentina
» Australia
» Austria
» Belgium
» Bermuda
» Brazil
» Canada
» Chile
» Costa Rica
» Curaçao
» Cyprus
» Czech Republic
» Denmark
» Estonia
» Finland
» France
» Gabon
» Georgia
» Germany
» Greece
» Guernsey
» Hungary
» Iceland
» India
» Indonesia
» Ireland
» Isle of Man
» Israel
» Italy
» Japan
» Jersey
» Korea
» Latvia
» Liechtenstein
» Lithuania
» Luxembourg
» Malaysia
» Malta
» Mauritius
» Mexico
» Netherlands
» New Zealand
» Nigeria
» Norway
» People's Republic of China
» Poland
» Portugal
» Russian Federation
» Senegal
» Slovak Republic
» Slovenia
» South Africa
» Spain
» Sweden
» Switzerland
» United Kingdom
» Uruguay
Countries that signed the MCAA on CbC
To date, the following countries have signed the MCAA on CbC:
56
As an integrated professional services firm, Rödl &
Partner is active at 108 wholly-owned locations in 50
countries. We owe our dynamic success in the service
lines audit, legal, management and IT consulting, tax
consulting as well as tax declaration and BPO to our
4,500 entrepreneurial minded partners and colleagues.
The history of Rödl & Partner goes back to its foundation
as a solo practice in 1977 in Nuremberg. Our aspiration
to be on hand wherever our internationally-active clients
are led to the establishment of our first, own offices,
commencing with Central and Eastern Europe in 1989.
Alongside market entry in Asia in 1994, the opening
of offices in further strategic locations followed, in
Western and Northern Europe in 1998, USA in 2000,
South America in 2005 and Africa in 2008.
Our success has always been based on the success
of our German clients: Rödl & Partner is always there
where its clients see the potential for their business
engagement. Rather than create an artificial network
of franchises or affiliates, we have chosen to set up
our own offices and rely on close, multidisciplinary
and cross-border collaboration among our colleagues.
As a result, Rödl & Partner stands for international
expertise from a single source.
Our conviction is driven by our entrepreneurial spirit
that we share with many, but especially German family-
owned companies. They appreciate personal service
and value an advisor they see eye to eye with.
Our ‘one face to the client’ approach sets us apart from
the rest. Our clients have a designated contact person
who ensures that the complete range of Rödl & Partner
services is optimally employed to the client’s benefit.
The ‘caretaker’ is always close at hand; they identify the
client’s needs and points to be resolved. The ‘caretaker’
is naturally also the main contact person in critical
situations.
We also stand out through our corporate philosophy
and client care, which is based on mutual trust and
long-term orientation. We rely on renowned specialists
who think in an interdisciplinary manner, since the
needs and projects of our clients cannot be separated
into individual professional disciplines. Our one-stop-
shop concept is based on a balance of expertise across
the individual service lines, combining them seamlessly
in multidisciplinary teams.
What sets us apart
Rödl & Partner is not a collection of accountants,
auditors, lawyers, management and tax consultants
working in parallel. We work together, closely
interlinked across all service lines. We think from a
market perspective, from a client’s perspective, where
a project team possesses all the capabilities to be
successful and to realise the client's goals.
Our interdisciplinary approach is not unique, nor is
our global reach or our particularly strong presence
among family businesses. It is the combination that
cannot be found anywhere else – a firm that is devoted
to comprehensively supporting German businesses,
wherever in the world they might be.
About us
57
Rödl & Partner worldwide
Active at more than 100 wholly-owned locations in 50 countries
58
Contact
Michael Scharf Certified Tax Consultant (Germany)
Partner
Phone: + 49 (911) 9193 – 10 70
E-Mail: [email protected]
Dr. Kai-Uwe Bandtel Attorney at Law (Germany), Certified Tax Consultant
(Germany), Specialist Attorney for Tax Law, Partner
Phone: + 49 (89) 92 87 80 – 560
E-Mail: [email protected]
59
Copyright:
2017 Rödl Rechtsanwaltsgesellschaft Steuerberatungsgesellschaft mbH. All rights reserved.
Information, illustrations and other contents of this publication may not be reproduced, copied, distributed,
processed, or otherwise used in any other way without the prior written permission of Rödl & Partner.
This publication was prepared with the utmost care possible. Nevertheless, no guarantee can be assumed for its accuracy,
completeness and actuality. Legal changes, as well as changes in the implementation practice that have taken place after the
editorial deadline (30.09.2014) could not be taken into account. The provided information is of a general nature and is not
to be treated as individually tailored advice nor as a substitute for it. No responsibility or liability can therefore be assumed for
decisions taken by the reader due to the information contained in this publication.
60
Rödl Rechtsanwaltsgesellschaft
Steuerberatungsgesellschaft mbH
Äußere Sulzbacher Straße 100
90491 Nürnberg
Phone.: + 49 (9 11) 91 93 – 0
Fax: + 49 (9 11) 91 93 – 19 00
E-Mail: [email protected]
www.roedl.com
”Each and every person counts“ – to the Castellers and to us.
Human towers symbolise in a unique way the Rödl & Partner corporate culture. They personify our philosophy of solidarity, balance, courage and team spirit. They stand for the growth that is based on own resources, the growth which has made Rödl & Partner the company we are today. ”Força, Equilibri, Valor i Seny“ (strength, equilibrium, valour and common sense) is the Catalan motto of all Castellers, describing their fundamental va-lues very accurately. It is to our liking and also reflects our mentality. Therefore Rödl & Partner embarked on a collaborative journey with the representatives of this long-standing tradition of human towers – Castellers de Barcelona – in May 2011. The association from Barcelona stands, among many other things, for this intangible cultural heritage.