The government of Czech Republic has submitted a bill on 22nd December 2016 to the parliament, which, if approved, would announce changes to the Law on International Cooperation in the Administration of Taxes. It would implement the provisions of Council Directive (EU) 2016/881 regarding automatic exchange of country-by-country (CbC) reports. To become law, the Bill must be approved by both chambers of the parliament and signed into law by the president. The Bill would generally apply with effect from 5th June 2017. In accordance with the Bill, the CbC reporting requirement applies to multinational enterprise groups (MNE groups) with consolidated group revenue exceeding EUR 750 million and with at least one MNE group entity resident in the Czech Republic. There would be some penalties in case of failure to meet the obligations under the bill:
- CZK 1.5 million for the decisive or surrogate parent companies; and
- CZK 600,000 for Czech entities of the MNE groups.
