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Penalty increase for CbC in the Netherlands

Charles Marais Charles Marais

On April 18, 2017, an amendment was approved relating to a significant increase of the penalty for intention non-compliance and implementing a formal notification obligation. This amendment will be in effect from June 5, 2017 and shall apply for financial years commencing on or after January 1, 2016.

Increased penalty

Due to the acceptance of the amendment the penalty for intentionally not filing the Country-by-Country (CbC) Report increases significantly from EUR 20.500 to a maximum EUR 820.000. For a first offense, a lower penalty than the maximum may apply.

Notification obligation

According to the legislative proposal for the additional rules regarding the exchange of CbC Reports released in February 2017, Dutch tax resident entities that are part of a multinational group with a consolidated turnover of EUR 750 million or more are required to notify the DTA on the last day of their financial year of the multinational group which entity within the multinational group is submitting the CbC Report. The sanction on intentionally not meeting the notification requirement was a penalty of EUR 20.500.

The increase of the penalty from EUR 20,500 to EUR 820.000 in the amendment will apply to the notification obligation as well as of June 5th, 2017.

Extension of the notification

The DTA have granted all Dutch entities an extension of the notification term by 8 months to September 1, 2017. This extension will only apply to multinational groups that have concluded their financial year prior to August 31, 2017.

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Questions

If you would like to know more on CbC reporting or would like some assistance with the notification in the Netherlands, please contact our .

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