Normative Ruling 1,709/2017 of 25 May 2017 amended the 2016 normative ruling that introduced the country-by-country (CbC) reporting obligation in Brazil effective from fiscal year(FY) 2016. According to the new ruling for FY 2016, the Brazilian tax authorities will allow an ultimate parent entity (UPE) that is resident in a country with which Brazil has not signed a competent authority agreement (CAA) for the exchange of CbC reports, should be considered as the reporting entity of the group on a conditional basis, provided the UPE’s jurisdiction allows for voluntary filing in FY 2016.
If the competent authority agreement is not signed with Brazil by 31 December 2017, the Brazilian constituent entity may amend its corporate income tax return (which would have been filed by 31 July 2017) within 60 days (of 31 December 2017) and file the CbC report on behalf of the entire group, or it may designate an adequate surrogate entity.
