On September 15 the Dutch government presented its plans to incorporate the proposed guidance of BEPS Action 13 on Country-by-Country Reporting. These plans include the obligation for Netherlands based multinational enterprises (MNEs) with a consolidated revenue of at least EUR 750 million to file a Country-by-Country report within 12 months following the fiscal year end closing.
Transfer pricing master file and local file
In addition the plans include documentation requirements for tax residents in the Netherlands that are part of a MNE group with a consolidated revenue of at least EUR 50 million. These requirements include having a transfer pricing master file and a local file in place. These files need to be available prior to filing the annual tax return.
Effective date, language and penalties
Both the Country-by Country report as well as the master file and local file requirements will go into force per January 1, 2016 and can be filed in either Dutch or English. Non-compliance with the documentation requirements results in a reversal of the burden of proof and can lead to additional penalties or criminal prosecution.