CbC Changes in Brazil and Colombia

In November 2018, Brazil and Colombia introduced regulatory changes with view to Country-by-Country Reporting (CbC).

 

Brazil

Country-by-Country Reportings (CbC) exists in Brazil since 2016 based on the Normative Ruling 1,681. Thus, Brazil`s regulation is in line with the requirements of OECD`s BEPS Action 13 Plan.

Brazil`s tax authority RFB published numbers on how many tax jurisdictions it has or is planning to exchange reports with:

  • 2016: 38 countries including Cayman Islands, Luxemburg and Ireland
  • 2017: 55 countries

The report exchange for 2017 is planned for March 2019.

 

Colombia

In Colombia, the tax authority DIAN has published information regarding the submission requirements for CbC reports. The following companies have to submit the report for the fiscal years starting from 2016:

  • MNE with a parent company residing in Colombia
  • company groups residing in Colombia
  • Permanent establishment in Colombia

 

DIAN requires the CbC report to include the following information:

  • Income from related and unrelated entities
  • Profits / losses before income tax
  • Income tax paid
  • Accrued income
  • Equity
  • Retained earnings
  • Number of employees
  • Tangible assets other than cash and cash equivalents

 

The report needs to be submitted electronically including the electronic signature of the company`s legal representative. He is also responsible for its successful submission.

 

 

These regulatory changes could affect your business with view to customizing or support of your ERP/SAP system. Please contact us to learn about possible necessary reactions to the changes – we are happy to assist you!

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