On 31 May 2017, the Lithuanian Tax Administrator has approved (Order No VA–47) the reporting rules for the multinational enterprise also known as country by country (CbC) reporting rules. These rules came into force as of 5 June 2017.
Under this rules, the CbC report must be submitted within 12 months after the last day of the taxpayer’s financial year. An exemption applies to the first CbC report which must be submitted for the financial year starting on 1 January 2016 or later if the financial year starts not on 1 January 2016. Under Lithuanian legislation, the deadline to submit the first CbC report is 31 March 2018.
The parent company of the MNE group is obliged to submit a CbC report if consolidated revenues of the MNE group exceed 750 million euros per year. In certain cases, parent company of the MNE group can pass on an obligation to submit a CbC report to another company of MNE group (surrogate parent company).
The reports will be submitted electronically through the systems provided by the Lithuanian Tax Administrator.
Based on the CbC reporting rules, information related to financial and other operational results of the companies should be divided into two separate tables:
- The first table should include revenues, paid taxes and overview of other financial indicators of the MNE group segregated by countries.
- The second table should show the list of all companies of the MNE group additionally indicating the main business activities of different companies of the MNE group in different countries.
As a final point, CbC reporting rules are obligatory not only for separate MNE group companies but also to the permanent establishments. Permanent establishment.
