BEPS Country-by-Country Reporting in the Cayman Islands

This Client Advisory is a high-level summary of practical issues arising from the Tax Information Authority (International Tax Compliance) (Country-by- Country Reporting) Regulations, 2017 (“CbCR Regulations”).

The CbCR Regulations
The Cayman Islands is a member of the OECD’s Inclusive Framework on Base Erosion and Profit Shifting (“BEPS”), which brings together over 100 jurisdictions to collaborate on the implementation of the OECD BEPS Package. All OECD and G20 countries have committed to implementing CbCR. The CBCR Regulations were gazetted on 15 December 2017 to implement BEPS Action 13, namely Country by Country Reporting (“CbCR”), in the Cayman Islands. On 2 February 2018 the Cayman Islands Department of International Tax Cooperation (“DITC”) issued an Industry Advisory with further details.

Application of the CbCR Regulations
The CbCR Regulations only apply to multinational enterprise groups with consolidated group revenue of USD 850 million or more during the previous fiscal year (“MNE Groups”). Groups with consolidated group revenue of less than USD 850 million are excluded and do not need to take any steps to comply with the CbRC Regulations.

However, Cayman Islands resident entities which are constituent entities of MNE Groups (“Constituent Entities”) will be required to take certain steps to comply.

Being “resident” in the Cayman Islands for these purposes means being incorporated, established, having a place of effective management or being subject to financial supervision in the Cayman Islands.

 

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