The Dutch State Secretary of Finance released a draft law providing changes to the Dutch Corporate Income Tax Act 1969 on 15 September 2015. The proposed changes involve supplementary transfer pricing documentation requirements in line with the three-tiered approach of Action 13 of the Organisation for Economic Co-operation and Development (OECD) Base Erosion and Profit Shifting (BEPS) project. According to the draft law, the Country-by-Country (CbC) report, the master file and local file requirements will be applied for fiscal years starting on or after 1 January 2016.
The Draft law also stipulates that not fulfilling the obligations to submit the CbC report will be regarded as a criminal offense and will lead to a monetary fine of €8,100 or custody of six months at the most for the party involved. This will become effective for fiscal years starting on or after 1 January 2016.
