Country-by-country requirements: Summary of key European jurisdictions

Tax Update

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On 5 October 2015, the OECD/G20 delivered, in the context of the Base Erosion and Profit Shifting (BEPS) Project, the final Action 13 report (Transfer Pricing Documentation and Country-by-Country reporting). This report includes revised standards for transfer pricing documentation and a template for Country-by-Country (CbC) reporting.

The BEPS Action 13 Report recommends that the CbC reporting takes place with respect to fiscal periods commencing from January 2016. However, countries are at various stages of implementation. This Tax Insight summarises the current status of CbC reporting obligations in various European jurisdictions, as listed below.

CbC reporting is a key component of the global trend towards greater tax transparency by MNE groups.

We have summarised the framework of the requirements for each of the selected countries. It is worth noting the importance of the decision of the MNEs on where to file the CbC, based on each country's specific regulations on surrogate, voluntary filing or secondary filing options, as well as the notification requirements of each country.

For further information please contact Joel Cooper or the relevant country author.

In this issue

  • France
    13 DEC 2016

    CbC reporting was introduced into French legislation by the Finance Bill 2016. The new provisions, set forth under article 223 quinquies C of the French tax code, are effective for fiscal year ("FY") beginning on or after 1 January 2016. However, as the CbC report is required to be filled within 12 months from the ending of the FY to which it relates, companies ending their FY on 31 December will still have until 31 December 2017 to collect and report the relevant information.

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  • Portugal
    13 DEC 2016

    The Portuguese CbC reporting rules were approved in March of 2016 by the Portuguese Budget Law for 2016 (“PBL”). The PBL included a provision (article 121.º-A) in the Portuguese Corporate Income Tax Code foreseeing new obligations regarding the report of financial information and other relevant information by multinational groups.

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  • Spain
    13 DEC 2016

    The new Spanish Corporate Income tax Regulations were approved on 11 July 2015 through the Royal Decree 634/2015, which complement the provisions included in the Spanish Corporate Income Tax Law (Law 27/2014) that entered in force on 1 January 2015.

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  • United Kingdom
    13 DEC 2016

    The UK CbC reporting regulations - "The Taxes (Base Erosion and Profit Shifting) (Country-by-Country Reporting) Regulations 2016" - were made on 26 February 2016.

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  • Germany
    13 DEC 2016

    In Germany, CbC reporting has not yet been incorporated into domestic laws. However, draft legislation is currently being processed by the legislative bodies (Bundestag and Bundesrat) and is likely to be enacted this year.

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  • Italy
    13 DEC 2016

    CbC reporting has been introduced in Italy by article 1, paragraphs 145 and 146, Law no. 208/2015 (2016 Budget Law; hereinafter the "Law"), with effect as from January 1, 2016.

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  • Netherlands
    13 DEC 2016

    As of 1 January 2016, multinational groups with revenue exceeding EUR 750 million and operates in the Netherlands are confronted with detailed transfer pricing documentation requirements. Under these documentation requirements, multinational groups are required to prepare a CbC report, a master file and a local file.

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  • Poland
    13 DEC 2016

    CbC reporting has been introduced in Poland by Act amending the Personal Income Tax and the Corporate Income Tax acts ("CbC amendment"). Regulations on CbC reporting are binding as of 1 January 2016.

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