The Netherlands has implemented Country-by-Country (CbC) Reporting requirements as part of its commitment to the Base Erosion and Profit Shifting (BEPS) Action Plan developed by the Organisation for Economic Co-operation and Development (OECD).

Under the CbC Reporting requirements in the Netherlands, multinational enterprises (MNEs) with a consolidated group revenue of at least €750 million in the previous fiscal year are required to file a CbC report. The report should contain information on the global allocation of income, taxes paid, and other indicators of economic activity among tax jurisdictions in which the MNE group operates.

The ultimate parent entity of the MNE group is responsible for filing the CbC report if it is resident in the Netherlands. If the ultimate parent entity is not resident in the Netherlands, the obligation to file the CbC report falls on the designated entity in the Netherlands.

The deadline for filing the CbC report in the Netherlands is within 12 months from the end of the fiscal year of the MNE group. Failure to file the CbC report or providing false or misleading information can result in penalties.

The penalty regime for non-compliance with CbC Reporting requirements in the Netherlands is quite severe. MNEs that fail to file the CbC report or provide incomplete or inaccurate information can face fines of up to €820,000. In addition, the Dutch Tax and Customs Administration can impose a penalty of up to €20,250 for each missed or incorrect item of information in the CbC report.

MNEs must file the CbC report in the Netherlands electronically through the country’s online portal for business registration and reporting (Mijn Belastingdienst Zakelijk). The CbC report should be prepared in XML format according to the guidelines specified by the OECD.

In addition to the CbC report, MNEs operating in the Netherlands may be required to prepare and file Transfer Pricing Documentation (TPD) if they have cross-border related party transactions. The TPD report should provide detailed information on the pricing of related party transactions within the MNE group.

In conclusion, the Netherlands has implemented CbC Reporting requirements as part of its compliance with the OECD’s BEPS Action Plan. MNEs with a consolidated group revenue of at least €750 million in the previous fiscal year must file a CbC report in the Netherlands. The penalty regime for non-compliance with CbC Reporting requirements in the Netherlands is severe, and MNEs must also prepare and file a Transfer Pricing Documentation report if required.