On November 21, 2016 a Decree of the Dutch State Secretary for Finance of November 15, 2016 by which the State Secretary approves that taxpayers file the first notification, which has to be made based on Article 29d of the Dutch corporate income tax Act, no later than September 1, 2017 (instead of no later than the last day of the Reporting Fiscal Year of the multinational group as the Dutch corporate income tax Act determines) was published in the Dutch Staatscourant.

 

As per January 1, 2016 the Dutch corporate income tax Act contains legislation implementing the proposals made by the OECD regarding Country-by-Country Reporting. In this respect Article 29d of the Dutch corporate income tax Act arranges the following:

1.  Any constituent entity of a multinational group that is resident for tax purposes in The Netherlands shall notify the Dutch tax administration whether it is the Ultimate Parent Entity or the Surrogate Parent Entity, no later than the last day of the Reporting Fiscal Year of such multinational group.

 

2.   Where a constituent entity of a multinational group that is resident for tax purposes in The Netherlands is not the Ultimate Parent Entity nor the Surrogate Parent Entity, it shall notify the Dutch tax administration of the identity and tax residence of the Reporting Entity, no later than the last day of the Reporting Fiscal Year of such multinational group.

 

In his decree the State Secretary approves:

·   Any constituent entity of a multinational group that is resident for tax purposes in The Netherlands shall notify the Dutch Tax Administration for the first time whether it is the Ultimate Parent Entity or the Surrogate Parent Entity, no later than September 1, 2017.

·   Where a constituent entity of a multinational group that is resident for tax purposes in The Netherlands is not the Ultimate Parent Entity nor the Surrogate Parent Entity, it shall notify the Dutch Tax Administration for the first time of the identity and tax residence of the Reporting Entity, no later than September 1, 2017.

The approval doesn’t apply if the Reporting Fiscal Year of such multinational group end on or after August 31, 2017.

 

The reason for which the Dutch State Secretary has extended the date for the abovementioned first notification is that for determining which group entity is the Reporting Entity it is also important between which countries an agreement for the exchange of CbC information has been concluded. This is the case if the respective country, like The Netherlands, has signed the Multilateral Competent Authority Agreement on the Exchange of Country-by-Country Reports (CbC MCAA) and has notified the OECD as meant in Article 8 of the MCAA CbC. The OECD will set a timeline for making the notifications as meant in the previous sentence. According to the Decree, the Dutch State Secretary for Finance expect this timeline to run until July 1, 2017.

 

Since the notification period as included in Dutch law would expire before the notification period of the OECD will have expires, this would mean that the Dutch tax authorities would have to have been notified before it is clear between which countries an agreement for the exchange of CbC information has been concluded. The Dutch State Secretary therefore feels it would not be reasonable to hold Dutch taxpayers to the notification period as included in Dutch law. Therefore he decided to grant extension for the notifications to be made for the 2016 Reporting Fiscal Year.

 

Click here to be forwarded to the Decree of the Dutch State Secretary of November 15, 2016 as published in the Dutch Staatscourant of November 21, 2016.

 

 

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