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Update - Bahamas CbC Reporting Requirements

As previously reported, the Bahamas House of Assembly approved the Multinational Entities Financial Report Bill 2018 in May 2018 for the introduction CbC reporting requirements. The text of the legislation as enacted in July 2018 has recently become available. Key points are summarized as follows:

  • The CbC reporting requirements apply for reporting fiscal years beginning on or after 1 January 2018 for MNE groups meeting a USD 850 million consolidated group revenue threshold in the preceding year;
  • The obligation to submit CbC reports applies for ultimate parent entities resident in the Bahamas and surrogate parent entities, subject to certain conditions (see note on secondary local filing requirements for non-parent constituent entities below);
  • Constituent entities resident in the Bahamas must submit a notification on whether they are the ultimate or surrogate parent by the last day of the reporting fiscal year, or if neither, must provide notification on the identity and residence of the reporting entity by the same deadline - For the 2018 reporting fiscal year, an extension is provided with the notification due by 31 May 2019;
  • The deadline for submitting CbC reports is 12 months after the end of the reporting fiscal year; and

Administrative penalties up to USD 5,000 and fines up to USD 10,000 (upon summary conviction) may be imposed for failing to comply with the CbC reporting obligations.

Note, the wording of the provisions for surrogate parent filing is similar to the standard secondary local filing provisions for constituent entities. As such, secondary local filing requirements are uncertain, although according to the OECD, local filing in the Bahamas is not required.

Further, with respect to the deadline for CbC reports, the legislation includes a provision that for reporting fiscal years that began on or before 31 May 2018, the corresponding CbC report should be filed no later than 31 March 2019. This provision seems to be in error given that a standard 12-month fiscal year beginning on 31 May 2018 would finish after 31 March 2019.

Further details will be published once available.

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