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Transfer Pricing News Flash: Transfer Pricing News Flash: Bilateral CbCR exchange agreement with the US is legally effective since 16 August 2018

26 September 2018

According to the Ministry of Finance, the bilateral CbCR exchange agreement with the US is legally effective since August 16, 2018 (refer also to https://www.irs.gov/businesses/country-by-country-reporting-jurisdiction-status-table). The Austrian Ministry for Europe, Integration and Foreign Affairs is currently clarifying any needs for publishing in the federal gazette.  Still, according to the Ministry of Finance the agreement is already factually effective. The CbCR exchange agreement is also valid for the reporting period 2016 (!). Amended disclosures according to § 4 VPDG for the reporting periods 2016 and 2017 should thus be filed with the Austrian tax authorities, if applicable.

What is a CbCR?
A CbCR is a report, which provides tax information, such as global allocation of income, taxes paid, and the economic activities of a multinational enterprise (MNE), as well as a listing of all countries where the MNE operates (see § 2 Z 6 VPDG). Parents of MNEs based in Austria which fulfill the reporting requirements have to submit the CbCR at the latest 12 months after the end of the relevant fiscal year electronically to the Austrian tax authorities. While the CbCR has to be submitted by the reporting entity (normally the Parent of the MNE), any Austrian-based constituent (controlled) entity of a MNE has to submit a disclosure according to § 4 VPDG by the end of the relevant fiscal year. As part of the disclosure, the entity has to declare:

  • Whether it is the parent of the MNE (and has to submit the CbCR) or, if this does not apply
  • Which entity is obliged to submit the CbCR, and where it is resident (legal name and tax residency).

It is important that the disclosure according to § 4 VPDG has to be submitted annually in an electronic way (via FinanzOnline) to the Austrian tax authorities, irrespective whether relevant changes occurred or not.

Ansprechpartner:
Alexandra Dolezel
Director
+43 1 53737-584

Stefan Zangerle
Junior Associate
+43 1 53737-350