Insights

CbC notification on AEOI portal

In May 2020, the second edition of the Transfer Pricing guidelines were issued by The Zakat, Tax and Customs Authority ((ZATCA) previously known as General Authority for Zakat and Taxes or GAZT). The new guidelines provided that all constituent entities based in the Kingdom of Saudi Arabia (KSA) are required to file two country-by-country reporting (CbCR) notifications in a financial year.

Following this announcement, ZATCA has started issuing notices to taxpayers that they now need to file their second country-by-country (CbC) notification through the Automatic Exchange of Information (AEOI) portal.

ZATCA has indicated that this notification must be completed as soon as possible to avoid penalties. The specific penalties for default have not yet been released by ZATCA, but they are expected to be the same as those stipulated in the Income Tax Law.

As a next step, all KSA based constituent entities are required to file an additional CbC notification in a financial year, in addition to the notification filled along with the Transfer Pricing disclosure form.

Below, we have provided high-level instructions, which may vary on a case-by-case basis, to assist taxpayers in completing the CbC notification on the AEOI portal, which can be accessed on the following link.
 

ZATCA AEOI portal enrolment

All taxpayers should be registered on the AEOI portal to submit the Article 3
notification.

  • Existing users: If you are already registered, you can use your existing username (email id) and password details to proceed with submitting the notification, see section II below. ·        
  • New users: Please follow the below steps to register on the AEOI portal.

Once the registration process
is complete, the enrolment form will be reviewed by ZATCA for approval and you
will then receive an approval email. The approval email will include the
details regarding login address, username (email id) and temporary password
which must be changed during the first login.
 

Article 3 notification completion and submission


Points to consider    

Notifying Entity
Information:
This refers to the KSA taxpayer that is submitting the notification.

Activity of the notifying entity:

This should match the activity selected in Table II of the CbC report. If several activities have been selected in the CbC report, the main activity should be chosen.

UPE/SPE/Constituent Entity:

  • UPE: is the Ultimate Parent Entity.
  • SPE: is the Surrogate Parent Entity (i.e. entity filing the CbC report if different from UPE).
  • Local Constituent Entity (i.e. entity within the Group that is neither of the above). 
 

Information of the
Multinational Enterprise/Entity
of the Notifying entity: 

MNE Group’s information:

  • Legal name of the UPE
  • TIN for the UPE
  • Tax jurisdiction of the UPE
  • Financial year end of the UPE
  • (UPE) is the filing entity

If the UPE is not the filing entity, add the following
information:

  • Legal name of the filing entity
  • Tax Identification Number for the filing entity 
  • Tax jurisdiction of the filing entity
  • Financial year end of the filing entity
 

Constituent Entity
Information:
This again refers to the KSA taxpayer that is submitting the notification.

Legal form of Reporting Entity:

  • Please choose from the dropdown option
    “Multinational”. 

Deloitte’s view

To ensure compliance in line with ZATCA’s requirements, it is essential for taxpayers in KSA to submit their Transfer Pricing filing by the deadline in order to avoid penal consequences. 

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