Cayman launches CbC Reporting Portal

The Cayman Islands’ country-by-country (CbC) reporting portal has been launched, with the first CbC reports due from some taxpayers by the end of the month.

CbC reporting requires multinational enterprises (MNEs) that meet certain criteria to file a country-by-country report with tax authorities. CbC reporting applies only to MNE groups with annual consolidated group revenue of not less than a specified threshold amount in the preceding fiscal year, which is USD 850 million in Cayman.

CbC reports are due within 12 months of the end of the fiscal year. As a result of an earlier extension, the first deadline will be May 31, 2018 in order to provide extra time for those taxpayers whose fiscal year began in the first 5 months of the year in 2016.

According to the Finance Ministry of the Cayman Islands, a Reporting Entity resident in the jurisdiction must make a CbC Report via the CbCR Portal even if that results in duplication because a CbC Report for the same MNE Group has already been made to another Competent Authority, for instance where the MNE Group appoints a Surrogate Parent Entity in another participating jurisdiction or where a Reporting Entity resident in the islands is also resident for tax purposes in another participating jurisdiction.

It should be noted that the CbC Report provides a breakdown of the amount of revenue, profits, taxes, and other indicators of economic activities for each tax jurisdiction in which the MNE group does business.

Comments are closed.