May 2018
Further to our Alert issued in January 20181 the Tax Information Authority of the Cayman Islands (“TIA”) has now issued Guidance in respect of the Country-by-Country Reporting requirements (“CbCR”).1
CbCR requires every entity that is “resident in the Islands”2 to determine whether or not it is a constituent entity (“CE”) of a multinational enterprise (“MNE”) and to notify the TIA of the name and jurisdiction of the MNE group’s (“MNE Group” )3 reporting entity (“Reporting Entity”)4. The Reporting Entity is required to file a report (“CbC Report”) if the MNE Group has a consolidated group revenue of at least US$850 million. Only one notification is required to be made by the Reporting Entity for all CEs in the same MNE Group.
The Reporting Entity is required to appoint individuals as primary and secondary contacts (the “Primary Contact” and “Secondary Contact” respectively); such individuals need not be resident in the Cayman Islands. The Primary Contact is the only one permitted to provide information for the MNE Group via the Cayman CbCR Portal. The Secondary Contact is to serve as a “back-up” contact for the TIA in the event that the Primary Contact is unresponsive or there are otherwise concerns regarding the Primary Contact’s representation of the MNE Group.
Key Dates
| Deadline for CEs where the Reporting Entities are resident in the Cayman Islands to make the CbCR notification for MNE Groups with a fiscal year which began on or after 1 January 2016 and ended on or before 31 May 2017. Otherwise, the first notification or update to an existing notification will be before the end of the relevant fiscal year. | |
| Deadline for Reporting Entities resident in the Cayman Islands to make the CbC Report for MNE Groups for any fiscal year that began on or after 1 January 2016 and ended on or before 31 May 2017. Otherwise, the deadline for reporting in respect of any subsequent fiscal year is within 12 months of the end of that fiscal year. | |
| Deadline for participating jurisdictions to transmit messages containing CbC Reports to receiving countries via the OECD’s Common Transmission System (“CTS”). | |
| Deadline for CEs where Reporting Entities are not resident in the Cayman Islands to make the CbCR Notification for all CEs resident in the Cayman Islands for those MNE Groups with a fiscal year which began on or after 1 January 2016 and ended on or before 30 September 2018. Otherwise, the first notification or update to an existing notification will be before the end of the relevant fiscal year. |
Should you require any additional information or assistance, please contact your usual Conyers Dill & Pearman representative.
1 The Guidance was issued on 29 March 2018 in respect of the Tax Information Authority (International Tax Compliance) (Country-by-Country Reporting) Regulations, 2017.
2Please see our previous Alert for a definition of resident in the Islands.
3Please see our previous Alert for a definition of MNE Group.
4Please see our previous Alert for a definition of “Reporting Entity”, “Ultimate Parent Entity” and “Surrogate Parent Entity”