Costa Rica Publishes Amending Resolution To Clarify CbC Reporting Requirements For Multinational Groups

; posted on
March 21st, 2019

Costa Ricas’ Government has published Resolution No. DGT-R-008-2019 in the Official Gazette. The Resolution amends Resolution DGT-R-001-2018, which regulated the information that companies based in Costa Rica need to report for the purposes of automatic exchange of country-by-country (CbC) reports in accordance with the OECD's BEPS Action 13.

The Amendment

The amendment aims to clarify that the CbC reporting requirements apply in respect of multinational groups only. Prior to the amendments the original CbC reporting resolution generally referred to groups or multinational groups in terms of the requirements. Therefore, the wording in article 2 (obligation to report), article 3 (obligation to notify) and article 5 (procedure to file the report) was amended to include a reference to multinational group.

In response to these changes, in particular article 2, country-by-country reporting applies to Multinational Groups headquartered in Costa Rica with annual consolidated group revenue equal to or exceeding €750 million in the previous year; it applies from fiscal year 2017 onwards.

With regard to article 3, any constituent entity of a multinational group that is tax resident in Costa Rica must notify the Costa Rican Tax Administration of its status as the reporting entity, whether it is the ultimate parent entity or surrogate parent entity, of a multinational group. Additionally, any ultimate parent entity residing in Costa Rica that decides to file the CbC report in a foreign tax jurisdiction must notify the Costa Rican Tax Administration of its decision and indicate the name of the multinational group.

The report should be submitted to the tax administration in an XML file that meets the standard structure defined by the OECD and must be filed by December 31 of the following year (regardless of the year end).

Date of Enforcement

The Resolution is effective as from 18 March 2019.

Source: The Government Of Costa Rica

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