Cayman issues Guidance on Compliance with CbC Reporting, FATCA, CRS

New guidance on the obligation on large multinational groups to file a country-by-country report in the jurisdiction and also an update on Common Reporting Standard and US Foreign Account Tax Compliance Act reporting have been released by the Cayman Islands.

On March 29, guidance was released by the Cayman Islands’ Department for International Tax Cooperation (DITC) alongside the release of:

– The CbCR Notification Template (in CSV format);
– The Authorisation Letter Template; and
– The CbC XML Schema User Guide (Draft).

The guidance provides an overview of the OECD’s recommendations and of the Cayman law underpinning the CbC reporting regime (the Tax Information Authority Law (2017 Revision)), explains the obligation to notify which entity will file the CbC report, sets out the filing deadlines, how to complete the CbC report, and how the Cayman Islands intends to share the information required multilaterally.

The Cayman Islands recently pushed forward the deadline for filing CbC reports. The deadline was March 31, 2018, for those groups with fiscal years beginning in 2016 between January 1 to March 31, 2016. It was then required within 12 months of the end of any fiscal year, for those fiscal years beginning after March 31, 2016. The Ministry of Financial Services and Home Affairs has now announced the following: “A Reporting Entity resident in the islands must make its first CbC Report by May 31, 2018, if the CbCR Regulations require it to make its first CbC Report on or before May 31, 2018.” This provides additional flexibility specifically for those whose fiscal period begins in the first five months of the year.

In a separate announcement, the DITC announced that it has reopened the automatic exchange of information (AEOI) portal for notification and reporting in relation to the Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS).

The deadlines are:

– April 30, 2018 for notification (i.e. enrollment);
– May 31, 2018, for reporting for the 2017 calendar year.

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