The Ministry of Finance (MOF) on 26 July 2017, issued detailed guidelines for Country-by-Country (CbC) reporting. The guidelines also include the form and instructions for submitting the CbC reporting notification and require the following essential information:
- a brief description of group companies;
- information on the reporting parent company; and
- the role of the local reporting subsidiary within the group, where applicable.
The first country-by-country (CbC) reports required to be made to the tax authorities are due by 31 March 2018 for the tax year 2017.
The Latvian State Revenue Service (SRS) on 08 August 2017 announced the Country-by-Country (CbC) reporting regulations, which were approved by the Latvian Cabinet in July following an amendment to the Law on Taxes and Duties to require CbC reports. The regulations are principally in line with BEPS Action 13.
A parent company of an international group that is tax resident in the Republic of Latvia must submit by 31 December 2017 to the State Revenue Service an overview of the group’s economic activities and finances in 2016. The SRS is inviting enterprises to notify the SRS before August 31 whether the report will be submitted as a parent company, an alternate company or as a multinational enterprise group entity.
In Latvia the obligation to prepare and submit a CbC report applies to a taxpayer who is a tax resident of the Republic of Latvia, if it is a parent company of the group and the consolidated turnover of the group is at least 750 million Euros. Also a tax resident of Latvia may be appointed as a substitute company for submission of the CbC report if there is an obstacle to the group parent company submitting a report in another country.
The CbC report for the previous year has to be submitted by December 31, 2017, using the form for completion of the report available in the Electronic Declarations System (EDS). The relevant form will be placed in the EDS during the fourth quarter of this year.
The Ministry of Finance on 28 July 2017 has issued a Notification (No. 75/2017), which announces that the Multilateral Competent Authority Agreement on the Exchange of Country-by-Country (CbC) Reports entered into force for India on 12 May 2016 and is effective between India and other jurisdictions.
On 11 August 2017 the US IRS in its latest bulletin of news and information on country by country (CbC) reporting advised that parent entities of U.S. multinational enterprise (MNE) groups with $850 million or more of revenues in a previous annual reporting period can now file Form 8975, Country-by-Country Report, with their annual income tax return.
Form 8975, and attached Schedules A, will report a U.S. MNE group’s income, taxes paid, and other indicators of economic activity on a country-by-country basis.
The Law 4484/2017 entitled “Adaptation of Greek Legislation to the provisions of Directive (EU) 2016/881 and other provisions” was published in the Government Gazette on August 1, 2017. It harmonizes Greek legislation with the provisions of Council Directive (EU) 2016/881 of May 25, 2016 on the mandatory automatic exchange of information in the field of taxation and modifies the Greek Corporate Income Tax L.4170/2013 and 4474/2017 with respect to Country-by-Country (CbC) reporting. The House of Representatives of the Ministry of Finance on “Law 4484/2017” was voted on by the Plenary Assembly on July 28, 2017. The Greek Parliament introduced this draft Law 4484/2017 on July 20, 2017.
Normative Instruction 1,722/2017 published in Brazil’s Official Gazette on 17th July 2017 amends Normative Instruction 1,681/2016 relating to guidance on CbC reporting. According to NI 1,722/2017, transitional provisions apply if a legal entity which is resident in Brazil for tax purposes and which is not the ultimate controlling company of a multinational group has not designated a substitute entity for filing the CbC report on behalf of the group.
Under the transitional mechanism the tax authorities would accept a notification that the ultimate controlling company of the multinational group is located in a jurisdiction that has no competent authority agreement for the automatic exchange of CbC reports in force with Brazil; or that it has a competent authority agreement for the automatic exchange of CbC reports in force with Brazil that is in force for years beginning from 1 January 2017.
In the latter case the Brazilian entity could be required to file a CbC report within a deadline of sixty days if the competent authority agreement is not implemented (retroactively to 1 January 2017) by 31 December 2017; or if the other jurisdiction requires a CbC report from one or more entities whose ultimate parent company is tax resident in Brazil.