On November 15, 2016, the Dutch State Secretary of Finance issued a decree, delaying the first notification deadline for country-by-country (“CbC”) reporting to September 1, 2017. The tax authorities have developed an automatic notification tool, which the State Secretary intends to make compulsory. The notification is made pursuant to Section 29d of the Corporation Tax Act.
Under Section 29d, a Dutch tax resident group entity of a multinational group must inform the inspector, by the last day of the group’s reporting year, whether it is the ultimate parent entity or the surrogate parent entity. A Dutch tax resident group entity of a multinational group, that is neither the ultimate parent entity nor the surrogate parent entity, must inform the inspector by the last day of the group’s reporting year with respect to the reporting entity’s identity and tax residence.
The extended deadline for the first notification does not apply if the last day of the multinational group’s reporting year falls after August 31, 2017.
The decree will be published in the Government Gazette and enter into force on its date of publication.
On December 22, 2015, the Dutch Parliament approved the Tax Plan 2016 Bill, which implements the OECD BEPS Action 13 transfer pricing documentation recommendations on CbC reporting, and Master and Local Files. Under the law, a CbC report must be filed by Dutch resident parents of multinational groups, with consolidated revenue of at least €750 million, for tax years beginning on or after January 1, 2016.
On January 27, 2016, the Netherlands was among the 31 countries that signed the OECD Multilateral Competent Authority Agreement on the Exchange of CbC Reports (the "MCAA"). Under the MCAA, signatories may exchange CbC reports with other signatories if they have CbC reporting requirements in place and are a party to the OECD Convention on Mutual Administrative Assistance in Tax Matters.