On January 31, 2018, Bermuda’s Finance Ministry released an updated list of tax jurisdictions that will be treated as “reportable jurisdictions” for the purposes of the country-by-country (CbC) reporting standard for the 2016 and 2017 reporting periods.
Following six countries were newly added as CbC 2016 additional “reportable jurisdictions” as at January 31, 2018: Bulgaria, Columbia, Croatia, Hungary, Indonesia, and Malta. These jurisdictions will receive 2016 fiscal year CbC information from Bermuda in 2018.
According to the Finance Ministry, Brazil, Chile, Liechtenstein, and Uruguay were newly added as CbC 2017 “reportable jurisdictions” as at January 31, 2018. These jurisdictions will receive 2017 fiscal year CbC information from Bermuda in 2019.
CbC reporting is part of a three-tiered approach to transfer pricing documentation (along with “master” and “local” files) developed under base erosion and profit shifting Action 13.
The requirement for constituent entities resident in Bermuda for tax purposes to collect, maintain, and report information for exchange with partner jurisdictions is set out in the International Cooperation (Tax Information Exchange Agreements) Act 2005, and the International Cooperation (Tax Information Exchange Agreements) Country-by-Country Reporting Regulations 2017.
In April 2016, Bermuda signed the OECD’s Multilateral Competent Authority Agreement for the automatic exchange of CbC reports developed under BEPS Action 13.