Several Member States have started to issue additional guidance, as they prepare for implementation. The UK and Dutch administrations have issued new guidance, although they have both adopted the 6-month reporting deferral.
Examples in both sets of guidance are informative, and may also serve as a trend for other Member States that are in the process of implementation.
However, Germany, among others, remains fairly silent in this guidance as they have not adopted the deferral period, with reporting deadlines at the end of July and August 2020.
The Dutch Secretary of Finance has thoughtfully issued a Decree, whereby the notification period for informing the tax administration of the Country-by-Country (CbC) report for tax year 2016 is delayed until Sept. 1, 2017.
it is intended to officially confirm that the Dutch tax authorities will accept CbC reports that have been filed in other jurisdictions on a voluntary basis (parent surrogate filing) in line with guidance issued by the Organisation for Economic Co-operation and Development (OECD)
The Dutch State Secretary of Finance expects that it may take until August 2017 to have clarity on the automatic exchange of information matching process for reporting fiscal years starting on or after 1 January 2016.
Hopefully, other countries will follow this practical approach, as it represents a win-win for taxpayers and the tax administration. However, other countries still need to be reviewed, especially for US multinationals, to verify additional notifications required by Dec. 31, 2016.
The Dutch government has provided comments to the BEPS Guidelines, as they have generally been patient re: unilateral legislation that would represent non-conformity with the recently announced actions. However, they would be ready to adopt tax incentives for Dutch taxpayers if there are unintended BEPS consequences that would weaken its attractive tax environment.
PwC’ Tax Insights article provides details for this update:
The article is refreshing re: BEPS conformity, including transparency, by the Dutch government. The adoption of its innovation box regime as of 1/1/2017 will reflect the modified nexus approach of the BEPS Actions.
However, it is also interesting to note the measures it may take to retain its attractiveness for multinationals if there are adverse BEPS consequences. This viewpoint is significant to watch, as other countries may adopt similar measures that will represent additional complexity and nonconformity around the world. Additionally, each country will have its own view, in addition to unique incentives to protect its local tax base.