The deadline for submission of the first Country-by-Country Report electronically through BTRANS has been extended for the second time.

 TAX NEWS

NO: 2021/5 

Subject: The deadline for submission of the first Country-by-Country Report electronically through BTRANS has been extended for the second time.

According to the Transfer Pricing Circular No. TF-2/2020-1 dated 17 December 2020, announced by the Turkish Revenue Administration, the deadline for submission of the first Country-by-Country Reports (CbCRs) via BTRANS (The Revenue Administration Information Transfer System), with regard to the year 2019 and special accounting periods ending in January 2020 (which were initially required to be submitted until 31 December 2020 and 31 January 2021, respectively) had been extended until the end of 26 February 2021 (this was the first extension).

Another extension (second extension) was made through the announcement of the Transfer Pricing Circular No. TF-3/2021-1 dated 19 February 2021, by the Turkish Revenue Administration on 22 February 2021.

Accordingly;

For those Multinational Entity (MNE) Groups, whose Ultimate Parent Entity (UPE) or Surrogate Parent Entity (SPE) is tax resident in Turkey (i.e. Turkish MNE Group Entities), the deadline for electronic submission of the first CbCR through BTRANS for the year 2019 and fiscal  periods ending in January/2020 and February 2020 has been extended until the end of 31 March 2021, Wednesday,

For those MNE Groups whose UPE or SPE is not tax resident in Turkey (i.e. Foreign MNE Group Entities), the deadline for electronic submission of the first CbCR  through BTRANS for the year 2019 and fiscal periods ending in January-February-March-April-May/2020 has been extended until the end of 30 June 2021, Wednesday.

Some examples are provided in the table below for further clarification: 

Explanations Regarding the ‘‘Country-by-Country Reporting Notification Forms’’ Submitted to the Turkish Revenue Authority so far for the year 2019 and Fiscal Periods beginning after 1 January 2019

In accordance with the explanations provided in “Section 7.4.-Country-by-Country Report’’ of Transfer Pricing General Communiqué no. 1, members of the MNE Groups that operate in Turkey, and are within the preparation and submission scope of CbCR had already submitted their first CbCR Notification Forms for the year 2019 and for those fiscal periods beginning after 1 January 2019 to the Turkish Revenue Authority (TRA) until the end of the 30 October 2020 via the internet tax office electronic platform.

As a result of the progress made subsequent to 30 October 2020 in the OECD’s activation process of the ‘‘the Multilateral Competent Authority Agreement on the Exchange of Country-by-Country Reports’’ (“CbC MCAA”), which had been signed by Turkey on 30 December 2019 and approved through the Presidential Decree No. 3038 as of 1 October 2020, the list of countries that are authorized to send CbCRs to the TRA had been announced on the OECD’s website as of 24 December 2020 (based on the update made by the OECD on its website on 23 December 2020). Accordingly, 47 countries are currently included in the list of countries that are authorized to share CbCRs with the TRA. 

You can click on the following link to see the list of Signatories of the CbC MCAA and signing dates:

Signatories of the Multilateral Competent Authority Agreement on the Exchange of Country-by-Country Reports (oecd.org)

You can also refer to the following link to see the list of 47 countries that are authorized to share CbCRs with the TRA as a result of the activation made by the OECD in December 2020:

Activated exchange relationships for Country-by-Country reporting - OECD

From among the constituent entities initially within the scope of obligation for submission of CbCR to the TRA; those who already filed their ‘‘CbCR Notification Form’’ until 30 October 2020 by declaring that they would submit CbCR to the TRA, however whose obligation was eliminated as a result of the OECD’s activation of the CbC MCAA as of 24 December 2020 for 47 countries (the countries that will share CbCR with the TRA), those constituent entities in Turkey whose UPE or SPE is resident in one of the countries included in the list of 47 countries that are authorized to share CbCRs with the TRA (e.g. Belgium, France, Germany, Italy, Japan, Netherlands, United Kingdom) shall no longer be required to submit CbCR locally to the TRA  (provided that their UPE or SPE is tax resident in one of the countries stated in the above mentioned list and that there is an existing CbCR obligation in the jurisdiction in which the UPE or SPE is resident). According to Transfer Pricing Circular No. TF-3/2021-1, there will be no requirement for amendment or re-submission of the CbCR Notification Form due to the activation of MCAA relationship subsequent to 30 October 2020.

About the Petitions Previously Filed to Obtain BTRANS User Code and Password to electronically submit CbCR

The entities that are resident in Turkey and a member of the MNE Group that is obligated to file CbCR to the TRA, had already applied to the TRA – Application and Data Management Department with a petition in order to obtain BTRANS user code and password so as to be able to electronically submit CbCR data to the TRA’s BTRANS platform for the year 2019 and the fiscal periods beginning after 1 January 2019.

Those constituent entities in Turkey (including Turkish branches) that have a UPE or SPE which is resident in one of the 47 countries that are listed in the OECD’s website as the countries from which the TRA are now authorized to receive CbCRs (e.g. Belgium, France, Germany, Italy, Japan, Netherlands, United Kingdom) as a result of the activation of exchange relationships based on the CbC MCAA in December 2020, are advised to file a separate petition to the TRA – Application and Data Management Department, this time, for the purpose of cancellation of their BTRANS user code and password in case such entities had already been provided a BTRANS password to submit CbCR.

You can click here to refer to the original Transfer Pricing Circular No. TF-3/2021-1 (in Turkish) which was announced by the TRA on 22 February 2021.

Yours sincerely,

Deloitte Turkey

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