The Bahamas has implemented Country-by-Country Reporting (CbCR) as part of its commitment to the OECD’s Base Erosion and Profit Shifting (BEPS) Action 13. As a jurisdiction with a growing focus on international tax transparency, the Bahamas adheres to global standards for reporting requirements of multinational enterprises (MNEs). The Competent Authority of The Bahamas, under the Ministry of Finance, is responsible for administering CbCR.

This guide provides essential information for finance directors of MNEs operating in or through the Bahamas, including applicability, reporting requirements, submission deadlines, penalties, and key resources.

Applicability of CbCR in The Bahamas

Criteria for Reporting:

• CbCR requirements apply to multinational enterprise (MNE) groups that:
  • Have annual consolidated group revenue of BSD 850 million (Bahamian dollars, equivalent to €750 million) in the previous fiscal year.
  • Include entities or the Ultimate Parent Entity (UPE) tax-resident in the Bahamas.
  • Have no other jurisdiction meeting CbCR filing obligations (in cases where the Bahamas entity must act as the surrogate parent).

Relevant Legislation:

• The Bahamas’ CbCR requirements are established under the Multinational Entities Financial Reporting Act, 2018.
• Further implementation details are guided by regulations issued under this Act and in compliance with OECD standards.

Reporting Requirements

Information to be Reported:

• CbC reports must include aggregated, jurisdiction-level data on:
  • Total revenue (related and unrelated party transactions),
  • Profit or loss before income tax,
  • Income tax paid and accrued,
  • Stated capital and retained earnings,
  • Number of employees,
  • Tangible assets (excluding cash and cash equivalents).
• The report must identify all group entities, their jurisdictions of tax residence, and their primary business activities.

Form and Submission:

• Reports must be filed electronically using the CbCR reporting portal provided by the Bahamian Competent Authority.
• Reports must comply with the OECD’s XML schema format.
• Notifications regarding the reporting entity (UPE or surrogate parent entity) must also be submitted annually to the Competent Authority.

Platform Access:

• Further details can be found on the official Ministry of Finance website: The Bahamas Ministry of Finance.

Filing Deadlines

• The Country-by-Country Report must be filed within 12 months of the end of the group’s fiscal year.
  • For example, if the fiscal year ends on 31 December 2023, the report must be filed by 31 December 2024.
• Notifications of the reporting entity must be provided to the Competent Authority by the last day of the fiscal year.

Penalties for Non-Compliance

Penalties:

• Failure to comply with CbCR obligations in the Bahamas may result in:
  • Financial penalties for failure to submit the report, late submissions, or incorrect reporting.
  • Administrative fines can be significant depending on the extent of non-compliance.
• Repeated or intentional breaches may lead to additional sanctions or scrutiny.

Reasonable Cause:

• The Competent Authority may waive penalties if the MNE group demonstrates reasonable cause for non-compliance.

Confidentiality and Use of Information

Data Protection:

• CbC report data is protected under Bahamian laws and used exclusively for:
  • Risk assessment,
  • Transfer pricing analysis,
  • Ensuring compliance with international tax agreements.
• The Bahamas exchanges CbC reports under the Multilateral Competent Authority Agreement (MCAA) with jurisdictions committed to maintaining confidentiality and proper use of information.