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08 December 2017 Greek Tax Authority issues guidelines on Country-by-Country Reporting On 1 December 2017, Greece's Independent Public Revenue Authority (AADE) published Decision 1184/2017 in relation to Law 4484/20171 providing guidelines on the implementation of Country-by-Country (CbC) reporting in Greece. Under local rules, the Ultimate Parent Entity (UPE) of a Multinational Enterprise (MNE) Group or any other Reporting Entity (i.e., surrogate entity) established in Greece is required to submit the CbC report for each fiscal year, by electronic transmission to the competent authority within 12 months from the end of the MNE Group's reporting fiscal year. If the application for submitting the CbC report is not operational due to a technical failure, the deadline will be extended by seven working days. For MNE Groups with a short tax year (less than 12 months) beginning on or after 1 January 2016 and ending before 31 December 2016, the threshold of €750 million is applied proportionally in order to determine whether the UPE is required to file a CbC report. It should be noted that the above follows the Organisation for Economic Co-operation and Development's (OECD) Guidance on the Implementation of CbC Reporting (the CbCR Guidance) issued in November 2017 in which – inter alia – the calculation on a pro rata basis of the €750 million threshold is recommended as a determination approach for short accounting periods. If the UPE of an MNE Group is located in a jurisdiction with the €750 million threshold equivalent in domestic currency – as of January 2015 – and based on this, it was exempt from the CbC reporting obligation, then there is no requirement for a Constituent Entity of the MNE Group located in a different jurisdiction to file a CbC report due to currency fluctuations. The CbC report is submitted electronically through an e-platform of the AADE. For the submission, the Reporting Entity must appoint an individual who will be responsible for its registration and receipt of the relevant e-platform password. The appointment procedure should be completed by 15 December 2017 by e-mailing a standardized message (i.e., AADE's template) accompanied by an MNE Group's relevant letter. Technical instructions and details on the registration and submission process are available on the website of the AADE.2 As of the issuance of this Alert, no message template has been uploaded on the AADE's website. It is expected in the forthcoming days. Upon e-submission of the CbC report and notifications, the MNE Group name is written in the Latin alphabet by application of the international "transliteration" rules. Sections where free text is allowed (Table 3 of the CbC report) should be submitted in both Greek and English. The OECD's CbCR Guidelines stipulate the technical and operational details regarding the completion and exchange of the CbC report per country. Greek tax resident entities forming part of an MNE Group that are subject to the aforementioned requirements must notify the AADE of the identity and tax residence of the Reporting Entity no later than the last day of the Reporting Fiscal Year. For Reporting Fiscal Year 2016, an extension of the notification deadline has been granted. This means that Constituent Entities should submit the notification by the deadline for the CbC report submission (i.e., for MNE Groups with a Reporting Fiscal Year ending on 31 December 2016, the first notification is required to be filed by 31 December 2017). The notification should be submitted via e-mail to: notifications.cbcfiling@aade.gr, by sending a special form as posted on the AADE website in which relevant information is required, such as the name of the notifying entity, tax registration number (AFM) and contact details of the Reporting Entity. 1 See EY Global Tax Alert, Greece enacts new transfer pricing documentation requirements for Country-by-Country Reporting, dated 7 August 2017. 2 See the AADE website for more information.
Document ID: 2017-5018 |
