Norway: Proposed legislation to implement country-by-country reporting rules

Norway: Proposed legislation, CbC reporting rules

The Norwegian Ministry of Finance on 11 May 2016 released a legislative proposal regarding country-by-country (CbC) reporting rules for tax purposes.

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Under the legislative proposal—Prop. 120 L (2015-2016) Endringer i ligningsloven (land-for-land-rapportering til skattemyndighetene)—a Norwegian ultimate parent company of a multinational group with a consolidated revenue of NOK 6.5 billion or more would be required to submit a CbC report to the Norwegian tax authorities. The reporting requirement could also affect foreign group entities that are resident in Norway, if certain conditions are met.

Follows BEPS Action 13 recommendations

The legislative proposal generally is in line with the model legislation stated in the final report under the base erosion and profit shifting (BEP) Action 13 relating to transfer pricing documentation and country-by-country reporting, issued in October 2015 and is a follow-up the 2016 Norwegian state budget and the government's previous suggestions for tax reform. Read TaxNewsFlash-Transfer Pricing

Norwegian proposal

Under the current legislative proposal a Norwegian ultimate parent company of a multinational group would be required to submit a CbC report if the group has a consolidated revenue of NOK 6.5 billion or more.  A "secondary reporting obligation" would apply for a Norwegian subsidiary of a multinational group when:

  • The ultimate parent entity is not required to submit a CbC report in the jurisdiction where it is tax resident,
  • There is no automatic exchange of CbC reports agreement between Norway and the jurisdiction of the ultimate parent entity, or
  • The Norwegian tax authorities have given a notice to the Norwegian subsidiary, stating that the exchange of information arrangement is not operating effectively.

Norway has signed the multilateral competent authority agreement for the automatic exchange of CbC reports; accordingly, the Norwegian tax authorities will annually exchange on an automatic basis the CbC reports received from Norwegian reporting entities. 

The CbC reports will be submitted for the first time by 31 December 2017 for the fiscal year beginning 1 January 2016 or later. Further, it is proposed that the "secondary reporting obligation" will be effective from the fiscal year 2017. No specific penalties have been announced; thus, general administrative penalties will apply.

KPMG observation

According to the Ministry of Finance, the CbC reports would primarily be used by the Norwegian tax authorities for high-level transfer pricing risk assessment purposes. However, the reports also could be used in evaluating other BEPS-related risks and, when appropriate, for economic and statistical analysis. The CbC reporting rules would relate to fiscal years beginning 1 January 2016 or later despite the fact that the legislation would likely be enacted this year. 


For more information, contact a tax professional with KPMG's Global Transfer Pricing Services group in Norway.

Per Daniel Nyberg | +47 40639265 | 

Marius Basteviken | +47 4063 9032 |

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