Bermuda, US Agree To Exchange CbC Reports

by Mike Godfrey, Tax-News.com, Washington

13 December 2017

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

According to Bermuda, the signing of the deal means that the territory satisfies the US Internal Revenue Service's data safeguard requirements and also that it complies with the OECD's base erosion and profit shifting minimum standard in this area.

The territory said it will now automatically report information about the corporate income of Bermuda-based multinational enterprises that have any US income-generating activities to the US.

The new CbC agreement with the US is said to be consistent with a similar agreement signed earlier this month between Bermuda and the United Kingdom. The UK agreement, like the US agreement, enables the automatic reporting of corporate income on a country by country basis for UK tax enforcement purposes.

Bermuda is the first UK Overseas Territory to sign a CbC Competent Authority Agreement with the UK, and now also with the US.

Bermuda's Premier and Minister of Finance, David Burt, commented: "The agreement we have put in place with the US demonstrates Bermuda's continued commitment to being transparent, cooperative, and compliant with international tax authorities. As a leading jurisdiction in global tax transparency we will continue, without reservation, to show that Bermuda is no place to hide money. We stand by our call for other countries to meet the 'Bermuda Standard.'"

TAGS: Finance | Foreign Account Tax Compliance Act (FATCA) | tax | tax information exchange agreement (TIEA) | FATCA | Organisation for Economic Co-operation and Development (OECD) | Bermuda | United Kingdom | enforcement | transfer pricing | standards | Compliance | Tax | BEPS