The Cayman Islands have implemented legislation requiring Country-by-Country Reporting (CbCR) in line with the OECD’s Base Erosion and Profit Shifting (BEPS) Action 13. As a significant international financial centre, the Cayman Islands are committed to global tax transparency and have adopted regulations that apply to certain multinational enterprise (MNE) groups.

This guide outlines the CbCR framework in the Cayman Islands, including reporting obligations, compliance requirements, penalties for non-compliance, and useful resources.

Regulatory Framework

• Authority: Department for International Tax Cooperation (DITC)
• Legislation:
  • The Tax Information Authority (International Tax Compliance) (Country-by-Country Reporting) Regulations, 2017
  • Relevant updates and guidance issued by the DITC
• International Agreements:
  • The Cayman Islands is a signatory to the OECD’s Multilateral Competent Authority Agreement (MCAA) on the exchange of CbC reports

CbCR Filing Requirements

• Who Must File:
  • An MNE group with consolidated revenue of KYD 650 million (approximately EUR 750 million) or more in the previous fiscal year
  • Cayman Islands constituent entities must notify the DITC of their reporting status and the jurisdiction of the reporting entity
  • Filing is required if:
    • The ultimate parent entity (UPE) is a tax resident in the Cayman Islands, or
    • No qualifying CbC report is filed by a surrogate entity in another jurisdiction
• Notification and Filing Deadlines:
  • CbCR Notification: Due within 12 months of the end of the fiscal year
  • CbC Report Submission: Also due within 12 months of the end of the fiscal year
• Submission Format:
  • Reports must be filed electronically via the DITC Portal using the OECD-approved XML schema

Penalties for Non-Compliance

• Failure to notify or submit a CbC report:
  • Administrative fines up to KYD 4,000, with an additional KYD 100 per day for continued non-compliance
• Providing inaccurate or incomplete information:
  • Fines and further penalties, including reputational consequences

Important Considerations

• MNEs should ensure data consistency across all CbCR filings and related documentation (e.g., Master File and Local File)
• The DITC conducts reviews to verify compliance and data integrity
• The Cayman Islands participates in automatic exchange of CbC reports with other MCAA signatories

Useful Resources

• Department for International Tax Cooperation (DITC): https://www.ditc.ky
• CbCR Guidance and FAQs: https://www.ditc.ky/automatic-exchange-of-information/country-by-country-reporting/
• OECD CbCR Overview: https://www.oecd.org/tax/beps/country-by-country-reporting.htm