Actions required at year’s end: Transmission of the CbC-Report for the reporting period 2016 & CbCR-Notification for the reporting period 2017

Austrian ultimate parent entities (or Austrian surrogate parent entities) whose fiscal year follows the calendar year are for the first time obliged to file the CbC-Report at year’s end. In addition, Austrian entities forming part of a MNE Group have to transmit the CbCR-Notification to the competent Austrian tax office before the end of the calendar year if the MNE Group is obliged to file a CbC-Report at the end of the calendar year.

Obligation to file a CbC-Report for 2016.

Austrian ultimate parent entities are obliged to file a CbC-Report in case the consolidated group revenues in the previous fiscal year (hence in the fiscal year 2015) amount to at least EUR 750 million. Also obliged to file the CbC-Report are those Austrian entities which voluntarily assumed the role of surrogate parent entity.

Deadline for the filing of the CbC-Report for 2016.

The CbC-Report has to be filed electronically within 12 months of the end of the reporting period (Sec. 8 Para 1 VPDG). Thus, if the reporting period ends on 31.12.2016, the CbC-Report has to be transmitted not later than 31.12.2017. No extension of the deadline is possible! In case the filing is not done in time and / or the information transmitted is incorrect or incomplete penalties of up to EUR 50,000 per defendant can be levied.

First Experiences.

First experiences with the electronic filing of the CbC-Report via FinanzOnline show that the transmission of the report may not be successful in some cases. This may be for instance in case the transferred file does not follow the Austrian XML-Structure. As an example, based on the applicable XML-Structure, the following information has to be provided for all entities included in the report:

  • Local Tax Identification Number (TIN),
  • The two-digit ISO Country Code of the country issuing the TIN (country of which the entity is a tax resident),
  • Address of each entity.

According to the XML-Structure these fields are mandatory fields, so that a filing of the CbC-Report without inclusion of the required information is not possible. In case of Austrian entities we also advise to include the tax office identification code (“Finanzamtsnummer”) in addition to the tax Identification Number (“Steuernummer”). For foreign entities to which no tax identification number has been issued, “NOTIN” has to be included in the relevant field.

CbCR-Notification 2017.

Austrian entities which are part of a MNE Group, where the reporting period follows the calendar year, have to file a CbCR-Notification until 31.12.2017, with the competent Austrian tax office, in case the MNE Group has to compile a CbC-Report for the reporting period ending on 31.12.2017. According to the Austrian tax authorities the CbCR-Notification should be filed electronically via FinanzOnline under section “Mitteilung-VPDG”. Alternatively the form “VPDG 1“ can be used to file the CbCR-Notification. Also in case of the CbCR-Notification the filing deadline cannot be extended! In case the filing is not done in time penalties of up to EUR 5,000 per defendant can be levied (Sec 51 FinStrG).

Conclusion.

Due to the fact that the filing deadline cannot be extended and in view of the material penalties that can result from a late or incomplete / incorrect filing, it is advisable to transmit the CbC-Report for 2016 as soon as possible. A test-transmission, by which the filing obligation is not met, is encouraged in order to determine whether the prepared data file needs to be adapted before the expiration of the filing deadline on 31.12.2017. After completion of a successful test-transmission, the final CbC-Report has to be filed electronically via FinanzOnline prior to the expiration of the filing deadline on 31.12.2017.

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Andreas Theuerer

Andreas Theuerer

Manager | Deloitte Tax Telefon: +43 1 537 00 5632 Mail: atheuerer@deloitte.at

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