Under Section 95 of the tax laws of Kiribati, the tax authorities are empowered to re-calculate gross income or value of transaction on the basis of the market value, if they observe that the value of transactions between the associate companies / related parties is unreasonable as compared to the open market value.

For making adjustments in the values or income, the tax authorities may re-characterize the nature of income, loss, and payment as revenue or capital or otherwise.

Further, where the resident company has entered into a transaction that is, directly or indirectly, derived through/ related to a non-resident company connected to a tax haven, the tax authorities have the right to adjust the income and foreign tax credit position of the resident company to reverse the tax effect of such transaction (see Sec. 13.3.).

Country-by-Country (CbC) Reporting

Kiribati has till date not introduced a Country-by-Country reporting requirement and has not yet joined the OECDs Inclusive Framework, membership of which presupposes a commitment to implement the BEPS minimum standards, including Country-by-Country reporting.