The Government of Bermuda has recently issued:

Common Reporting Standard (CRS) Regulations; and

Country-by-Country Reporting (CbCR) Regulations.

The Regulations govern the implementation and enforcement of the CRS and the CbCR regimes, respectively.

The Ministry of Finance has also issued CRS Guidance which is intended to assist Industry with complying with their obligations under the regime and the Ministry of Finance has indicated that it will be issuing CbCR Guidance in the near future.

Additional guidance will also be issued once Bermuda's Electronic Reporting Portal (Portal) is in place later this year to assist users of the Portal.

CRS

The recent amendments to Bermuda's International Cooperation (Tax Information Exchange Agreements) Act 2005 and the issuance of the CRS Regulations together introduce some key new provisions including the following:

  • Obligation to notify/register
  • Requirement for written CRS policies and procedures
  • Obligation to keep records
  • Definition of 'Dormant Accounts'
  • Offences and penalties

Bermuda Reporting Financial Institutions should ensure that they:

  • Become familiar with Regulations and Guidance
  • Ensure written policies and procedures are in place
  • Review third party contracts
  • Notify/Register on the Electronic Reporting Portal
  • File CRS reports or nil returns (if applicable)
  • Complete due diligence on pre-existing entity and low value individual accounts

BeesMont has prepared a bulletin containing important information for Bermuda Reporting Financial Institutions including key changes, reminders and next steps. Read more

The CRS Reportable Jurisdictions List has also been published by the Bermuda Government and is reproduced as an annex to this article.

CbCR

Bermuda's CbCR Regulations largely follow the OECD's CbCR Model Legislation. It is important to note that the CbCR regime only applies to multinational enterprises located in two or more jurisdictions that meet the EUR750 million threshold. It is expected that this threshold exempts approximately 85-90% of multinational enterprise groups who, as a result, would not be caught under the regime.

Useful Links

Bermuda Ministry of Finance OECD CRS and FATCA page https://www.gov.bm/oecd-crs-and-fatca

OECD Exchange of Tax Information page http://www.oecd.org/ctp/exchange-of-tax-information/

OECD The Common Reporting Standard page http://www.oecd.org/tax/automatic-exchange/common-reporting-standard/ OECD Country-by-Country Reporting page

http://www.oecd.org/tax/beps/country-by-country-reporting.htm

Bermuda Reporting Financial Institutions should speak with their tax and legal advisors if they are uncertain about any of their obligations under the CRS.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.