The new reporting obligation – does it also apply to you too?
In our last newsletter, we drew your attention to the new reporting obligation concerning Czech companies (in connection with the so-called Country by Country Reporting), which are part of a multinational group of companies (the so-called entity). We have prepared more details for you in accordance to the important change.
If the entity is a member of a multinational group of companies, whose consolidated revenues has exceeded the limit of 750 million EUR, then the company is obliged to submit the report to the Specialised Financial Office that should contain:
- the highest parent entity (including its state or jurisdiction);
- in case the Czech member entity is not the highest parent entity, it shall report whether it is an acting parent entity or an acting European entity;
- if the Czech member entity is neither the highest acting parent company nor the acting European entity, the Czech company will notify whether the report will be submitted by another member entity of that group or whether the Czech company will submit this report instead;
- the report is submitted only once subject to changes in the reported data.
The highest Czech entity of the multinational group has to submit the first report by 31.10. 2017 at the latest.
In accordance to the coming term of submitting the first report, we recommend that you check out what the extent of the consolidated revenues of the group are, of whom you are a member. There is not much time left!
It is only possible to submit the obligatory report electronically. We have prepared for you an easy overview and would like to ask you to fill it out and return it back by 20.10.2017 – thanks to this, we will be able to easily evaluate whether the obligation to report applies to you or not. We will process the report for you.
|Am I a member of a multinational group with consolidated revenues of > 750 mil. EUR?
|Am I the highest parent company?
The accounting period, in which you should evaluate the extent of the consolidated revenues, is the accounting period ending on the 31.10.2017 at the latest, in which the consolidated financial statement of the group of companies should be arranged.
The new obligation to report is related to the increased efforts of the financial administration aimed at preventing profits being moved into tax jurisdictions with a preferential tax regime. For this reason, we recommend the Czech member entity to pay close attention to the problems of transfer pricing.
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