Deadline filing transfer pricing documentation rapidly approaching

In line with the recommendations of the OECD BEPS Action Plan, the Netherlands has introduced new, additional transfer pricing documentation requirements in its corporate tax law, starting for the fiscal year beginning on or after 1 January 2016. The ultimate deadline for this more extensive transfer pricing documentation for the fiscal year 2016 is 1 May 2018.

Multinational enterprises being present in the Netherlands through a legal entity or permanent establishment need to assess whether they are required to file a master file, local file or country-by-country (“CbC”) report with the Dutch Tax Authorities.

The master file and local file requirements apply to multinational enterprises with annual consolidated group revenue equal to or exceeding € 50 million. CbC reporting applies to multinational enterprises with a consolidated group revenue exceeding €750 million. Multinational enterprises are required to keep a master file and local file within the deadline for the filing of the corporate income tax return for the year to which the tax return relates.

In general, the deadlines for filing the corporate income tax return in the Netherlands are the following:

  • In case the fiscal year is equal to the calendar year, taxpayers must file the corporate income tax return before 1 June of the following calendar year.
  • In case of a broken fiscal year, taxpayers must file the corporate income tax return within 5 months after the end of the fiscal year.
  • In case of a short fiscal year ending on 31 December, taxpayers must file the corporate income tax return before 1 June of the following calendar year.
  • In case of a short fiscal year ending in another month, taxpayers must file the corporate income tax return before 1 April of the following calendar year.

Under certain circumstances, taxpayers may request an extension.

The ultimate date for filing the corporate income tax return for the fiscal year beginning on 1 January 2016, is 1 May 2018. As of the filing moment, multinationals are required to keep a master file and local file in their administration. Since the deadline is rapidly approaching, we urge you to take action.

If you need any assistance in meeting the master file and local file requirements, please feel free to contact us.