San Marino Amends Decree On CbC Reporting By Adding Penalties For Late CbC Reports

; posted on
May 2nd, 2019

San Marino has published Delegated Decree No. 68 of 25 April 2019, which provides for the amendment and ratification of Delegated Decree No. 18 of 25 January 2019 on the automatic exchange of Country-by-Country (CbC) reports. Overall, the CbC reporting requirements provided in Decree No. 68 are unchanged from those provided in Decree No. 18, however Article 9 on penalties has been amended.

The Penalties

Under the delegated decree, the CbC requirements cover multinational groups with total consolidated group revenue exceeding €750 million during the preceding fiscal year. The reporting requirement primarily applies for ultimate parent entities resident in San Marino, although secondary local filing requirements for non-parent constituent entities may also apply where standard secondary filing conditions are met. CbC reports should be filed before December 31 of the year after the closing of the reporting year.

The main amendment introduced in the decree is an €8,000 penalty for late submission of CbC reports. This penalty will be imposed along with the penalty of EUR 10,000 to EUR 50,000 for failing to submit a CbC report by the deadline or for submitting incomplete or incorrect information. To the extent the taxpayer submits the report later than the deadline, the amount of the penalty will be reduced with the percentage as follows:

  • by 50% if the delay is 15 days or less; or
  • by 30% if the delay is more than 15 days but less than 30 days.

In addition, it is provided that the EUR 10,000 to EUR 50,000 penalty will apply where a CbC report is submitted after 31 March of the second year following the reporting period. San Marino's CbC reporting requirements apply from the 2019 tax period, with a standard deadline of 31 December of the year following the tax period.

The Date of Enforcement

Delegated Decree No. 68 entered into force on 25 April.

Source: San Marino Government

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