Regulations to implement the country-by-country (CbC) reporting requirements from the OECD’s base erosion and profit shifting (BEPS) project have been finalized in South Africa.
The CbC draft regulations were proposed in April 2016, and were finalized on 23 December 2016.
A notification must be filed with the South African Revenue Service (SARS) as to whether the constituent entity of a multinational entity (MNE) group that is a resident in South Africa for tax purposes is the “ultimate parent” or the “surrogate parent entity.” If the entity is not the ultimate parent or surrogate parent entity, then details about the identity and tax residence of the reporting entity is required to be reported to SARS no later than 12 months after the last day of the reporting fiscal year of such MNE group. As of yet, there is no format or mode of such notification having been provided.
The final regulations state that the CbC report must contain information contained in the BEPS Action 13 final report.
The CbC regulations in South Africa apply to years of assessment beginning on or after 1 January 2016. Therefore, for some taxpayers, the reporting year will already have commenced.
Read a January 2017 report [PDF 107 KB] prepared by the KPMG member firm in South Africa
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.