Extended term for submitting reports for international group of companies
As we already informed in our Article of 11 July 2017, companies, which are part of international group of companies and are Latvian tax residents, if they qualify for the provisions, have to submit a report of their international group of companies for each country (hereinafter - CbyC report) for 2016 by 31 December 2017.
A Latvian tax resident is obliged to prepare and submit a CbyC report, if it is a group parent company and the consolidated net sales of the group is EUR 750 million. Additional cases, when Latvian companies are obligated to submit a CbyC report include, if the non-Latvian parent company has difficulties to submit a report (for example, CbyC report shall be prepared in its country of residence only for 2017), or Latvian company is appointed as a substitute parent company.
If a Latvian taxpayer qualifies for CbyC reporting it should notify the SRS no later than on the last day of the reporting year that it has the obligation to prepare and submit such a report. If it does not have the obligation to submit the CbyC report, the taxpayer should notify the SRS about the group entity, which will submit the
CbyC report. Companies had to report the above information for 2016 before 31 August 2017.
The SRS has again requested taxpayers, which did not submit the report by 31 August 2017, to announce before 30 November 2017 about which Group company will submit the CbyC report, using EDS. In EDS, you may report in free format if:
— The CbyC report will be submitted by the parent company, substitute parent company or other company of the international group of companies;
— The name of the submitter and country of tax residence (preferably the legal address and registration number as well), if the report will be prepared and submitted by a resident of another tax jurisdiction (i.e. other group company).
We also remind you that for Latvian tax residents, the CbyC report for 2016, must be submitted before 31 December 2017, also using EDS.
In a future articles, we will inform our readers on the planned changes in the Law ‘On taxes and duties’, which will significantly amend the requirements for preparation of transfer pricing documentation.