Beginning next month, February, the Barbados Revenue Authority (BRA) will conduct a series of information sessions on the requirements of the Income Tax (Country by Country Reporting) Act, 2021-27.
The Act which came into effect on December 31, 2021 is the domestic, legal, and administrative framework to impose and enforce country-by-country reporting requirements on in-scope multinational enterprises in Barbados. It allows Barbados to implement the BEPS Action 13, Country-by-Country Reporting.
Under the Act, multinational enterprises with total consolidated group revenue of more than USD $850 million, as reflected in their Consolidated Financial Statements, are now required to prepare a report for submission to the Authority. The Act outlines the first reporting fiscal year as any fiscal year beginning on or after January 1, 2021.
As the designated Competent Authority of Barbados, the Revenue Commissioner has executed the Country-by-Country Multilateral Competent Authority Agreement (CBC MCAA). Additionally, the Authority has lodged the required notifications with the OECD.
The legislation signals Barbados’ continued commitment, as a member of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS), to implement the four minimum standards of the BEPS Project. A copy of the Act can be found on the Authority’s website.