Taxes
11 October 2017

New reporting duty for entities that are part of multinational groups

A long-awaited amendment to the Act on International Cooperation implementing a new information exchange duty, i.e. country-by-country reporting, into Czech legislation was published in the Collection of Laws on 19 September 2017.

Daniel Szmaragowski
Soňa Saidlová

In accordance with the new amendment, all multinational groups with an annual consolidated turnover exceeding EUR 750 million will have to file a country-by-country report containing information specified by law broken down by countries and individual group companies. The country-by-country report must be filed by the parent company or an entity representing the group. A decree accompanying the new amendment was also published in the Collection of Laws. The decree contains a country-by-country report template and instructions on its completion. Country-by-country reports must be prepared in a xml fo rmat by the reporting entities proceeding in compliance with the OECD standardized scheme. The report must be filed within 12 months after the end of the period to which it relates.

However, the majority of Czech entities that are part of multinational groups must mainly file a notification which entity of a multinational group will submit a  country-by-country report for the period ended any time before 31 October 2017. Czech entities must file a notification no later than on 31 October 2017. Notifications are submitted to the Specialised Tax Authority only via an online EPO form.

The financial administration also published frequently asked questions and answers on this topic. These confirm that permanent establishments and branches do not have to file either notification or country-by-country report . Should you be interested in our assistance with filing the notification or preparing the report, do not hesitate to contact us.

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