Decree No. 306 / 2017 Coll.
Declaration on the model of the report by country and guidance on its completion for the purpose of automatic exchange of information with another State in the framework of international tax management cooperation
Valid
Effective from 19.09.2017
Text versions:
19.09.2017
306
DECLARATION
of 21 August 2017
on the model of the report by country and the guidance on its completion for the purposes of automatic exchange of information with another State in the framework of international tax management cooperation
According to Section 13zi (5) of Act No. 164 / 2013 Coll., on International Cooperation in Tax Administration and on the Amendment of Other Related Acts, as amended by Act No. 305 / 2017 Coll.:
Subject matter
This decree implements the relevant European UnionRegulation (1) and sets out, for the purposes of automatic exchange of information with another State, a country-by-country model report and guidance on its completion.
Model of report by country and guidance on its completion
(1) The model of the country-by-country report is set out in Annex 1 to this Decree.
(2) The guidelines for completing the country-by-country report are set out in Annex 2 to this Decree.
Efficacy
This decree shall take effect on the day of its publication.
Minister:
Ing. Busy v. r.
Příloha č. 1
Annex No 1 to Decree No 306 / 2017
Model of report by country
Table 1: Summary information on the multinational group of enterprises in relation to individual States or jurisdictions
Table 2: Information on individual members of the multinational enterprise group
Table 3: Additional information
Příloha č. 2
Annex No 2 to Decree No. 306 / 2017 Coll.
Instructions for completing the country report
I. General instructions
1. Purpose
The country-by-country report is used to provide some summary information on the multinational group of enterprises and information on the individual members of that group.
2. Branch of a member entity of a multinational enterprise group
2.1 The branch of a member entity of a multinational group of undertakings for the purposes of this decree is that part of a member entity of that group through which that member entity operates in a permanent establishment in the territory of a State or jurisdiction from which that member entity is not, under the International Tax Management Cooperation Act for the purpose of drawing up a report by country, a member entity of a multinational group of undertakings.
2.2 For the purposes of a report by country with the State or jurisdiction from which the branch is a member entity of a multinational group of undertakings, the State or jurisdiction in which the permanent establishment in which the business is carried out is situated is the State or jurisdiction.
2.3 Data on a branch of a member entity of a multinational group of undertakings shall be reported only in relation to the States or jurisdictions of which the branch is that branch and not in relation to the State or jurisdiction of which the member entity is a multinational group of undertakings to which the branch belongs.
2.4 The reported information for a member entity of a multinational group of enterprises to which the branch of a member entity belongs, in relation to the State or jurisdiction of which that member entity is a member entity, does not include financial information relating to that branch of a member entity.
3. Period to which the report by country refers
In the report by country for the reporting financial year, the Member States of the multinational group of enterprises shall report consistently:
(a) information for the accounting year of the members ending on the same date as the reporting financial year, or during the 12 months preceding that date; or
(b) information on all members reported for the reporting financial year.
4. Data source
4.1 Data sources may be data from consolidated reports, from the mandatory accounts of separate members of multinational groups of enterprises, from regulatory accounts or from internal management accounts. However, it is not necessary to reconcile the returns, profits and taxes reported in the report by country with the consolidated financial statements of that group. Where mandatory financial statements are used as a basis for reporting, all amounts shall be transferred to the declared functional currency of the Member State of that group which is required to report by country for that group on the basis of the average exchange rate for the period covered by the report by country. However, no adjustments need to be made for differences between accounting policies applied in each State or jurisdiction.
4.2 A brief description of the sources of data used to complete the report by country shall be given in the supplementary information section of the report by country. Where a year-to-year data source is changed, the reasons for the change and its consequences shall be explained in the supplementary information section of the report by country.
II. Special Instructions
1. Summary information on the multinational group of enterprises in relation to individual States or jurisdictions (Table 1 of Annex 1 to this Decree)
1.1. State or jurisdiction
The first column of the report by country shall include all States and jurisdictions of which the member entities are multinational groups of undertakings. Jurisdiction means jurisdiction with fiscal autonomy, whether state or otherwise. A separate line shall be added to all member entities of a multinational group of undertakings for which the member entity of a multinational group of undertakings which is required to report by country for that group is not from any State or jurisdiction. Where a member entity is from several States or jurisdictions, a border indicator from the relevant international tax agreement shall be used to determine the State or jurisdiction from which that entity is a member entity. If there is no such applicable international agreement, that member entity is from the State or the jurisdiction of its actual management. The place of actual management of the member entity shall be determined on the basis of internationally agreed standards.
1.2. Proceeds
1.2.1. In three columns of the country-by-country report under the heading "Revenue 'shall be reported.
(a) the sum of the income of all member entities of a multinational group of undertakings from the relevant State or jurisdiction arising from transactions with non-related undertakings;
(b) the sum of the revenues of all member entities of a multinational group of undertakings from the relevant State or jurisdiction arising from related business transactions;
(c) the total of the amounts referred to in points (a) and (b).
1.2.2. Revenue shall include revenue from the sale of stocks and real estate, services, royalties, interest, insurance premiums and any other relevant amounts.
1.2.3. The proceeds do not include transactions from other member entities of a multinational group of enterprises that are considered dividends in the State or jurisdiction from which the member entity of that group is the provider of the payment.
1.3. Result before income tax
The fifth column of the report shall include the result of the pre-tax income management of all members of this group from the competent State or jurisdiction. The pre-tax income result shall comprise all exceptional income and cost items.
1.4. Income tax paid
1.4.1. In the sixth column of the country-by-country report, the total amount of income tax actually paid during the period covered by the country-by-country report shall be reported by all member entities of the multinational group of undertakings from the competent State or jurisdiction.
1.4.2. The income tax paid shall include income taxes paid by the member entity of this group to both the State or jurisdiction of which it is and any other State or jurisdiction. The income tax paid shall include withholding taxes deducted by other legal entities or units without legal personality (related undertakings and unrelated undertakings) in relation to payments to the member entity of that group. If, therefore, a member entity is from a State or jurisdiction A and receives interest in a State or jurisdiction B, the tax deducted in a State or jurisdiction B shall be recognised in relation to a State or jurisdiction A.
1.5. Income tax payable
In the seventh column of the country-by-country report, the amount of current tax costs due recorded for taxable profits or losses during the period covered by the country-by-country report shall be reported for all members of that group from the competent State or jurisdiction. Existing tax costs reflect only transactions in the current year and may not include deferred tax obligations or provisions for uncertain tax liabilities.
1.6. Capital
In the eighth column of the report by country, the amount of capital for all members of the multinational group of undertakings which are from the competent State or jurisdiction shall be indicated. For branches of members of that group, the core capital shall be reported in relation to the member entity of that group to which the branch belongs, unless that branch has a defined capital requirement for regulatory purposes in the State or jurisdiction of which it belongs.
1.7. Cumulated farm result
The ninth column of the country-by-country report shall indicate the amount of the total cumulative profit or loss of all member entities of a multinational group of undertakings that are from the relevant State or jurisdiction at the end of the period to which the country-by-country report relates. For branches of members of that group, the accumulated results of the management shall be reported in relation to the member entity of that group to which the branch belongs.
1.8. Number of employees
1.8.1. The 10th column of the country-by-country report shall include the total number of full-time employees for all member entities of a multinational group of enterprises that are from the competent State or jurisdiction.
1.8.2. The number of employees may be reported at the end of the period covered by the country report on the basis of the average level for that period or on any other basis consistently used in all States and jurisdictions of each period. To this end, independent suppliers involved in the normal operational activities of a member entity of that group may be reported as employees.
1.8.3. Adequate rounding or approximate indication of the number of employees shall be permitted if such rounding or approximate presentation does not significantly interfere with the relative distribution of employees between the States and jurisdictions.
1.8.4. As regards the number of employees, consistent methods must be applied annually and for all the members of this group.
1.9. Tangible assets other than cash and cash equivalents
The 11th column of the report by country shall include the sum of the net carrying amounts of the tangible assets of all the member entities of the multinational group of undertakings that are from the competent State or jurisdiction. For branches of members, assets shall be reported in the State or jurisdiction from which the branch is located. Tangible assets for this purpose do not include cash or cash equivalents, intangible assets or financial assets.
2. Information on individual member entities of a multinational group of enterprises (Table 2 of Annex 1 to this Decree)
2.1. Member entity from State or jurisdiction
2.1.1. A breakdown by country and jurisdiction and the names of members of a multinational group of undertakings shall include all the members of that group that are from the competent State or jurisdiction. The branch of a member entity shall be listed in the State or jurisdiction of which it is located in accordance with point 2 of the Guidelines. The membership entity of this group to which this branch belongs must be indicated.
2.1.2 The members of a multinational group of undertakings which are not of any State or jurisdiction shall be listed in a separate group of members.
2.1.3. The name of the member entity of the multinational enterprise group shall be indicated, including the abbreviation of its legal form. For the branch of a member entity of that group, the second column shall include the name of the member entity to which the branch of the member entity belongs and the text "(P.E.) '.
2.2. State or jurisdiction of establishment or registration if different from the State or jurisdiction from which the member entity is a
The name of the State or jurisdiction under whose law the member entity of the multinational group of undertakings is established or entered in the Register shall be entered if they are different from the State or jurisdiction from which that entity is.
2.3. Nature of the main business or other main activity of the entity
2.3.1. The nature of the principal business or other principal activity carried out by a member entity of a multinational group of enterprises in the State or jurisdiction from which that entity is located shall be indicated by ticking one or more appropriate fields.
2.3.2. In the case of "Other 'box, the nature of the activity of the member entity under the heading" Additional information' shall be indicated.
3. Additional information (Table 3 of Annex 1 to this Decree)
Any other brief information or explanations that the member entity of the multinational group of undertakings considers necessary or makes it easier to understand the mandatory information specified in the report by country shall be provided.
1) Council Directive (EU) 2016 / 881 of 25 May 2016 amending Directive 2011 / 16 / EU as regards the mandatory automatic exchange of information in the field of taxation.
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Regulation Information
| Citation | Decree No. 306 / 2017 Coll., on the model report by country and guidance on its completion for the purposes of automatic exchange of information with another State in the framework of international cooperation in tax administration |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 19.09.2017 |
|---|---|
| Effective from | 19.09.2017 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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