Does Country-by-Country Reporting notification apply to branches?
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Yes and No.
Country-by-Country Reporting (“CbCR”) notification requirements in Norway exclusively apply to tax residents, cf. Tax Administration Act (TAA) section 8-12 third paragraph. As branches of foreign enterprises are not tax residents, branches are not obliged to make Country-by-Country Reporting notification in Norway.
However, it is not necessarily that easy.
The notification process in Norway is made part of the annual tax return (RF-1028 page 1). Branches are obliged to file a tax return, cf. TAA section 8-2. Some will argue that regardless of TAA 8-12, the reporting obligations would not be considered complete before the notification is fulfilled. Further, from FY17 it is technically challenging to file the return before a “yes” or “no” response is ticked related to the group's Country-by-Country Reporting obligations in the Altinn internet portal. It would be incorrect to tick “no”. Ticking “yes” would trigger an actual notification.
The advice is quite clear. Notify.
Ps. the Country-by-Country Report will automatically be exchanged between the taxing authorities regardless of any notification.
Eivind Faafeng Falck-Ytter
Jeg heter Eivind Faafeng Falck-Ytter og er advokat i Advokatfirmaet PwC. Min jobb er å finne gode løsninger for næringslivet, hovedsakelig knyttet til internasjonal selskapsbeskatning, internprising og grenseoverskridende restruktureringer.
Skatteverdenen blir stadig mer internasjonal og kompleks. Ved kjøp og salg av varer og tjenester utenfor Norges grenser må norske virksomheter håndtere skatteregler både i utlandet og i Norge. PwC har kontorer i de fleste land og vi har et unikt nettverk av skatterådgivere som kan bistå med spesialkompetanse på de fleste områder. Jeg håper mine innspill kan gi deg en alternativ innfallsvinkel til ulike temaer enn hva tradisjonelle nyhetsbrev gir.
My name is Eivind Faafeng Falck-Ytter, and I work as a lawyer in PwC Tax & Legal Services. I assist clients in finding solutions mainly within international corporate taxation, transfer pricing and international restructurings.
I hope my contribution to the blog can provide alternative perspectives as a supplement to traditional newsletters.
If you have any questions, comments or input, feel free to contact me!
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