Cayman Islands governmental agencies provided an industry update concerning changes to the country-by-country (CbC) reporting and base erosion profit shifting (BEPS) rules, among other items.
CbC reporting update
It is anticipated that further updates concerning the CbC reporting rules could be announced by the Cayman Islands Tax Information Authority. At present, it does not appear there would be significant changes to the CbC reporting requirements to be reported during 2019 (that is, the return for reporting for the 2018 tax year). However, it does appear the OECD could have notable changes for CbC reporting in 2020 (that is, for the 2019 tax year).
Economic substance return
The Cayman Islands’ legislative framework for an economic substance law was determined to be in line with the OECD standard for BEPS Action 5, and therefore “not harmful.”
Read a November 2019 report [PDF 129 KB] prepared by the KPMG member firm in the Cayman Islands
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