Bermuda Ready For Automatic Tax Information Exchange
by Mike Godfrey, Lowtax.net, Washington
20 June, 2017
Bermuda has launched a new online tax reporting portal for financial institutions and other reporting entities to comply with international tax information exchange reporting standards.
Bermuda's Automatic Exchange of Information (AEOI) portal will receive returns due under the OECD's Common Reporting Standard (CRS) as well as country-by-country reports, due under the OECD's BEPS Action Plan.
The CRS requires Bermudan financial institutions to provide an annual return setting out certain information in relation to every reportable account the institution maintains. This information is then automatically shared with participating jurisdictions.
Country-by-country reporting requires multinational enterprises (MNEs) to provide aggregate information annually, in 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 MNE group. This information is also shared with other jurisdictions.
Bermuda's Minister of Finance, Edward Richards, said: "[The] launch of Bermuda's AEOI portal is a milestone in protecting Bermuda as a leading international financial center. It is impossible to remain a viable center in today's compliance climate without conforming to the OECD AEOI regime, especially as it is required by both the European Union and the G20 to meet their standard for international cooperation on tax matters.
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