Tax Alert Guidance for Filing Country by Country Report (PER-29/PJ/2017)

Transcription

1 Tax Alert Guidance for Filing Country by Country Report (PER-29/PJ/2017)

2 Abbreviation WPDN = Resident Taxpayer (Individual or Entity) SPLN = Non Indonesian Tax Resident CbCR = Country by Country Report QCAA = Qualifying Competent Authority Agreement MNE = Multi National Enterprise 2

3 1. Who are required to submit CbCR? 3

4 WPDN Ultimate Parent Entity (Art. 1 no. 5; Art. 2 Par. (1) Letter (a), Art. (3) & (4)) Ultimate Parent Entity of a MNE Group It owns directly or indirectly an interest in one or more other entities of such MNE Group; It is required to prepare Consolidated Financial Statements under accounting principles generally applied in Indonesia and/or would be so required if its equity interests were traded on Indonesia Stock Exchange; It is an entity that is not owned directly or indirectly by other entities of such MNE group OR owned directly or indirectly by other entity, but such other entity is not required to consolidate the Ultimate Parent Entity s financial statements with its own financial statements; AND has a total consolidated group gross revenue for the corresponding fiscal year of at least Rp. 11 Trillion. 4

5 Such Ultimate Parent Entity IS NOT ALLOWED to appoint other Constituent Entity to substitute for the Ultimate Parent Entity (i.e. acting as Surrogate Parent Entity) to file the CbCR Report, either in Indonesia or other country or jurisdiction. 5

6 WPDN Constituent Entity (Article 2 Par. (1) Letter (b), Par. (5), Par. (7)) Constituent Entity An entity which Ultimate Parent Entity is a non-indonesian tax resident (SPLN) who is required to submit CbCR, however the country or jurisdiction where the Ultimate Parent Entity is domiciled:: a) Does not require submission of CbCR; b) Does not have a current International Agreement with Indonesian Government on exchange of tax information; OR c) Has the Agreement as discussed in b), but CbCR cannot be obtained by Indonesian Government from the corresponding country or jurisdiction. 6

7 If the SPLN Ultimate Parent Entity has appointed other Constituent Entity residing outside Indonesia as the Surrogate Parent Entity, WPDN Constituent Entity is not required to submit CbCR as long as: a) WPDN Constituent Entity submit a notification to the Directorate General of Taxes (DGT) on the SPLN Constituent Entity that has been appointed as Surrogate Parent Entity; and b) The country / jurisdiction where the SPLN Constituent Entity is domiciled: o o Requires submission of CbCR; and Has QCAA, and CbCR can be obtained by Indonesian Government from the corresponding country / jurisdiction. Where there are many WPDN Constituent Entities of the same MNE Group that are Indonesian tax residents, the SPLN Ultimate Parent Entity may appoint one of the WPDN Constituent Entities to submit CbCR to DGT. 7

8 2. How to Report CbCR? 8

9 Requirement to Submit NOTIFICATION (Art. 4 Par. (1), (2), (4), (5)) Required to Submit CbCR NOT REQUIRED to submit CbCR Submit NOTIFICATION Only required to submit + CbCR in XML Format NOTIFICATION After submitting NOTIFICATION (and) CbCR, Taxpayer will be provided with FILING RECEIPT. Such RECEIPT must be attached to Corporate Tax Return. 9

10 Timeline to Report NOTIFICATION (and) CbCR (Art. 3 Par. (5) & Art. 4 Par. (3)) etc. APRIL deadline to submit NOTIFICATION (and) CbCR for FY 2016 DECEMBER deadline to submit NOTIFICATION (and) CbCR for FY 2017 For FY 2016, deadline to submit NOTIFICATION (and) CbCR is 16 months after end of fiscal year (falls on April 2018). For FY 2017 onwards, deadline for such requirement is 12 months after end of fiscal year. In the case where CbCR cannot be obtained by DGT from the corresponding country or jurisdiction, the WPDN must submit CbCR in within 3 (three) months after the announcement of list of countries or jurisdictions from which CbCR cannot be obtained. 10

11 APPENDIX 11

12 NOTIFICATION Form (Attachment - Part B) NOTIFICATION (and CbCR) is submitted through DJP Online OR manually to the Tax Service Office if the DJP Online system is inaccessible. 12

13 Criteria of SPLN Ultimate Parent Entity (Art. 3 Par. (1)) Directly or indirectly owns an interest in 1 (one) or more other Constituent Entities of such MNE Group; Is required to prepare Consolidated Financial Statements under accounting principles generally applied in its jurisdiction of tax residence OR prevailing regulations in the domicile country or jurisdiction; Is not owned directly or indirectly by other entities of such MNE group OR owned directly or indirectly by other entity, but such other entity is not required to consolidate the Ultimate Parent Entity s financial statements; and Has a total consolidated group gross revenue for the corresponding fiscal year of at least: a) Equal to based on the exchange rate of SPLN Ultimate Parent Entity s functional currency on January 1, 2015 should the country or jurisdiction of domicile does not require submission of CbCR; OR b) The amount of consolidated gross revenue threshold that is used as the basis for requiring submission of CbCR, as regulated by the country or jurisdiction where the SPLN Ultimate Parent Entity is domiciled. 13

14 CRITERIA of Constituent Entity (Art. 3 Par. (2)) Any separate business entity of an MNE Group that is included in the Consolidated Financial Statements of the MNE Group for financial reporting purposes; Any business entity of an MNE Group that is excluded from the MNE Group s Consolidated Financial Statements solely on size or materiality grounds; AND/OR Any Permanent Establishment of any separate business entity of the MNE Group as discussed above, provided the business entity prepares a separate financial statement for such permanent establishment for financial reporting, regulatory, tax reporting, or internal management control purposes. 14

15 Contact Us If you have any questions or would like to know more about PER 29/PJ/2017, please contact us at : info@salaki-salaki.com / / This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors Persek Salaki & Salaki For further information, visit : TAX ALERT SS/TXALERT/05/2018 March 5, 2018