Czech Republic: Implementing CbC reporting advances | KPMG | GLOBAL

Czech Republic: Legislation for implementing country-by-country reporting advances

Czech Republic: Implementing CbC reporting advances

The chamber of deputies passed legislation to make country-by-country (CbC) reporting and CbC exchange measures part of Czech law. Once all legislative and publication processes are completed, the legislation will be enacted.

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Under the legislation, there are new responsibilities for companies that are a part of multinational groups having a total consolidated turnover exceeding €750 million. For these groups, a CbC report would have to be filed.

  • The CbC report would need to contain certain basic information, with that data broken down by individual countries.
  • Companies that are a part of eligible multinational groups would have to notify the tax authorities which company would be the entity designated to report the CbC information for the group. In the Czech Republic, this notification requirement would be satisfied by filing a notice with the specialized financial authority. The last day for filing this notice would be 31 October 2017, for all periods ending before 31 October 2017. 

The deadline for filing the CbC report remains unchanged—it would have to be filed within 12 months after the end of the period for which it is being filed. 

Filing the CbC report

Because the deadline for filing the CbC notice is approaching, the Czech tax administration is making final “cosmetic” changes to the electronic format by which the notice, and later the CbC report itself, would be filed. 

Once taxpayers complete the appropriate form, it would be filed electronically on the tax administration’s tax portal. This would be the only admissible manner of filing, and would require a verified electronic signature or identity verification by logging into a data box. Most likely, no other alternatives of filing the CbC notice would be offered. 

When a Czech company satisfies the criteria to file the CbC report, it would send the report in “xml format” using a uniform electronic form. According to information that is currently available, the company itself would be responsible for creating the xml file (this would be expected to affect only a couple of companies in the Czech Republic).

 

Read a July 2017 report prepared by the KPMG member firm in the Czech Republic: Country-by-country reporting – changes on the horizon

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