Bermuda To Exchange MNE Tax Info With The UK

Bermuda and the UK recently signed an agreement providing for the automatic exchange of country-by-country reports.

Bermuda is the first UK Overseas Territory to sign a CbC Competent Authority Agreement with the UK, which enables the automatic reporting of corporate income on a country-by-country basis for UK-related transfer pricing enforcement purposes.

The CbC report is one element of a new three-tiered standardized approach to transfer pricing documentation proposed under BEPS Action 13. Under the framework, multinational enterprises are required to provide aggregate information annually for each jurisdiction where they do business, relating to the global allocation of income and taxes paid, together with other indicators of the location of economic activity within the multinational enterprise group. It also covers information about which entities do business in a particular jurisdiction and the business activities each entity engages in.

At the conclusion of the signing of the agreement, Bermuda’s Premier, David Burt said: “I am pleased to sign this important agreement with the UK on behalf of the people of Bermuda. We are the first Overseas Territory to sign the agreement which further solidifies Bermuda’s position as a global leader in international tax transparency. Bermuda remains a jurisdiction with an excellent reputation for quality. We continue to demonstrate leadership in global tax transparency and we encourage other countries to meet the ‘Bermuda Standard.'”