{"id":460,"date":"2024-07-06T16:14:27","date_gmt":"2024-07-06T16:14:27","guid":{"rendered":"https:\/\/cedsto3.dreamhosters.com\/mbh\/multinational-entities-financial-reporting-act-2018\/"},"modified":"2024-07-07T15:53:23","modified_gmt":"2024-07-07T15:53:23","slug":"multinational-entities-financial-reporting-act-2018","status":"publish","type":"post","link":"https:\/\/cedsto3.dreamhosters.com\/mbh\/multinational-entities-financial-reporting-act-2018\/","title":{"rendered":"Multinational Entities Financial Reporting Act, 2018"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-lybqf0fj-11e2f300df15a0f5886a6d3d198ef539\">\n.avia-section.av-lybqf0fj-11e2f300df15a0f5886a6d3d198ef539{\nbackground-color:#3d3d3d;\nbackground-image:url(https:\/\/cedsto3.dreamhosters.com\/mbh\/wp-content\/uploads\/2024\/07\/corporate-services-bg-2.jpg);\nbackground-repeat:no-repeat;\nbackground-position:50% 0%;\nbackground-attachment:scroll;\n}\n<\/style>\n<div id='av_section_1'  class='avia-section av-lybqf0fj-11e2f300df15a0f5886a6d3d198ef539 main_color avia-section-no-padding avia-no-border-styling  avia-builder-el-0  el_before_av_section  avia-builder-el-first  avia-full-stretch avia-bg-style-scroll av-minimum-height av-minimum-height-60 av-height-percent  container_wrap fullsize'  data-section-bg-repeat='stretch' data-av_minimum_height_pc='60' data-av_min_height_opt='percent'><div class='container av-section-cont-open' ><main  role=\"main\" itemprop=\"mainContentOfPage\"  class='template-page content  av-content-full alpha units'><div class='post-entry post-entry-type-page post-entry-460'><div class='entry-content-wrapper clearfix'>\n<div class='flex_column_table av-1oo3o4-c83c17311273bf6d4ca32608b7a3027f sc-av_three_fifth av-equal-height-column-flextable'><div  class='flex_column av-1oo3o4-c83c17311273bf6d4ca32608b7a3027f av_three_fifth  avia-builder-el-1  el_before_av_two_fifth  avia-builder-el-first  first flex_column_table_cell av-equal-height-column av-align-bottom  '     ><style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-lybqbv3h-e2e077afe735a6078d9cd42b4ffc1418\">\n#top .av-special-heading.av-lybqbv3h-e2e077afe735a6078d9cd42b4ffc1418{\npadding-bottom:10px;\ncolor:#ffffff;\nfont-size:42px;\n}\nbody .av-special-heading.av-lybqbv3h-e2e077afe735a6078d9cd42b4ffc1418 .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n#top #wrap_all .av-special-heading.av-lybqbv3h-e2e077afe735a6078d9cd42b4ffc1418 .av-special-heading-tag{\nfont-size:42px;\n}\n.av-special-heading.av-lybqbv3h-e2e077afe735a6078d9cd42b4ffc1418 .special-heading-inner-border{\nborder-color:#ffffff;\n}\n.av-special-heading.av-lybqbv3h-e2e077afe735a6078d9cd42b4ffc1418 .av-subheading{\nfont-size:15px;\n}\n\n@media only screen and (min-width: 480px) and (max-width: 767px){ \n#top #wrap_all .av-special-heading.av-lybqbv3h-e2e077afe735a6078d9cd42b4ffc1418 .av-special-heading-tag{\nfont-size:0.8em;\n}\n}\n\n@media only screen and (max-width: 479px){ \n#top #wrap_all .av-special-heading.av-lybqbv3h-e2e077afe735a6078d9cd42b4ffc1418 .av-special-heading-tag{\nfont-size:0.8em;\n}\n}\n<\/style>\n<div  class='av-special-heading av-lybqbv3h-e2e077afe735a6078d9cd42b4ffc1418 av-special-heading-h1 custom-color-heading blockquote modern-quote  avia-builder-el-2  avia-builder-el-no-sibling  av-inherit-size'><h1 class='av-special-heading-tag'  itemprop=\"headline\"  >Legal Update<\/h1><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div><\/div><div class='av-flex-placeholder'><\/div><div  class='flex_column av-1lm9ys-697164ae5068213ab598cfaf7ec22e05 av_two_fifth  avia-builder-el-3  el_after_av_three_fifth  avia-builder-el-last  flex_column_table_cell av-equal-height-column av-align-bottom  '     ><\/div><\/div><!--close column table wrapper. Autoclose: 1 -->\n\n<\/div><\/div><\/main><!-- close content main element --><\/div><\/div><div id='av_section_2'  class='avia-section av-59z38-ddbfe683c5aca74fe004424eb5c6b83f main_color avia-section-default avia-no-border-styling  avia-builder-el-4  el_after_av_section  el_before_av_section  avia-bg-style-scroll container_wrap fullsize'  ><div class='container av-section-cont-open' ><div class='template-page content  av-content-full alpha units'><div class='post-entry post-entry-type-page post-entry-460'><div class='entry-content-wrapper clearfix'>\n<div class='flex_column_table av-1bmh18-9b102b47460ef40cb2be394361d0c9ba sc-av_four_fifth av-equal-height-column-flextable'>\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-1bmh18-9b102b47460ef40cb2be394361d0c9ba\">\n.flex_column.av-1bmh18-9b102b47460ef40cb2be394361d0c9ba{\nbackground-color:#ffffff;\n}\n<\/style>\n<div  class='flex_column av-1bmh18-9b102b47460ef40cb2be394361d0c9ba av_four_fifth  avia-builder-el-5  el_before_av_three_fourth  avia-builder-el-first  first flex_column_table_cell av-equal-height-column av-align-bottom  '     ><p><br \/>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-x7bzo-e9046fa9d88be3d914d97f484380c435\">\n#top .hr.hr-invisible.av-x7bzo-e9046fa9d88be3d914d97f484380c435{\nheight:50px;\n}\n<\/style>\n<div  class='hr av-x7bzo-e9046fa9d88be3d914d97f484380c435 hr-invisible  avia-builder-el-7  el_after_av_codeblock  avia-builder-el-last '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div><\/p><\/div><\/div><!--close column table wrapper. Autoclose: 1 --><div class='flex_column_table av-2nbok-ab101f6f7a5ebe8f4247d0f20c52aaab sc-av_three_fourth av-equal-height-column-flextable'>\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-2nbok-ab101f6f7a5ebe8f4247d0f20c52aaab\">\n.flex_column.av-2nbok-ab101f6f7a5ebe8f4247d0f20c52aaab{\nbackground-color:#ffffff;\n}\n<\/style>\n<div  class='flex_column av-2nbok-ab101f6f7a5ebe8f4247d0f20c52aaab av_three_fourth  avia-builder-el-8  el_after_av_four_fifth  el_before_av_one_fourth  first flex_column_table_cell av-equal-height-column av-align-bottom  '     ><p>\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-lybqboo8-fbd496592ca8b017f36db9dbd0d9ffda\">\n#top .av-special-heading.av-lybqboo8-fbd496592ca8b017f36db9dbd0d9ffda{\npadding-bottom:10px;\ncolor:#020202;\nfont-size:38px;\n}\nbody .av-special-heading.av-lybqboo8-fbd496592ca8b017f36db9dbd0d9ffda .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n#top #wrap_all .av-special-heading.av-lybqboo8-fbd496592ca8b017f36db9dbd0d9ffda .av-special-heading-tag{\nfont-size:38px;\n}\n.av-special-heading.av-lybqboo8-fbd496592ca8b017f36db9dbd0d9ffda .special-heading-inner-border{\nborder-color:#020202;\n}\n.av-special-heading.av-lybqboo8-fbd496592ca8b017f36db9dbd0d9ffda .av-subheading{\nfont-size:15px;\n}\n\n@media only screen and (min-width: 480px) and (max-width: 767px){ \n#top #wrap_all .av-special-heading.av-lybqboo8-fbd496592ca8b017f36db9dbd0d9ffda .av-special-heading-tag{\nfont-size:0.8em;\n}\n}\n\n@media only screen and (max-width: 479px){ \n#top #wrap_all .av-special-heading.av-lybqboo8-fbd496592ca8b017f36db9dbd0d9ffda .av-special-heading-tag{\nfont-size:0.8em;\n}\n}\n<\/style>\n<div  class='av-special-heading av-lybqboo8-fbd496592ca8b017f36db9dbd0d9ffda av-special-heading-h1 custom-color-heading blockquote modern-quote  avia-builder-el-9  el_before_av_textblock  avia-builder-el-first  av-inherit-size'><h1 class='av-special-heading-tag'  itemprop=\"headline\"  >Multinational Entities Financial Reporting Act, 2018<\/h1><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div><br \/>\n<section  class='av_textblock_section av-lybqeoci-c7ed87ed6918039d6b53189d498214f1 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock'  itemprop=\"text\" ><p>In July 2018 The Bahamas government passed the Multinational Entities Financial Reporting Act, 2018 (the \u201cMNE Act\u201d), which is deemed to have come into force on 1 January, 2018 and requires certain companies incorporated or resident in The Bahamas\u00a0with revenues of at least US$850 million to annually file a country-by-country report\u00a0with the Minister of Finance. The MNE Act was inspired by the Base Erosion and Profit Shifting (\u201cBEPS\u201d) initiative\u00a0of the Organization for Economic Co-operation and Development (\u201cOECD\u201d) and has been enacted to ensure that The Bahamas is compliant with the BEPS minimum standards. (reference: 1)\u00a0 BEPS\u00a0refers to tax avoidance strategies which exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations. (reference: 2)The MNE Act outlines, inter alia, the procedure for an MNE Group to file the requisite country-by-country report. An MNE Group is defined as including \u201c(a) \u2026 two or more\u00a0enterprises for which the tax residence is in different jurisdictions or includes an enterprise that is resident for tax purposes in one jurisdiction and is subject to tax with a respect to the business carried out through a permanent establishment in another jurisdiction; and (b) is not an Excluded MNE Group.\u201d (reference: 3)<\/p>\n<p>An Excluded MNE Group is defined as meaning, \u201c\u2026 with respect to any fiscal year of the Group, a Group having total consolidated group revenue of less than eight hundred and fifty million United States Dollars during the fiscal year immediately preceding the reporting fiscal year as reflected in its consolidated financial statements for such preceding fiscal year.\u201d<\/p>\n<p>Each MNE Group will have at least one \u201cultimate parent entity\u201d and may have a \u201csurrogate parent entity.\u201d An ultimate parent entity is an entity of an MNE Group which owns one or more entities in the MNE Group. Each ultimate parent entity of an MNE Group which is resident in The Bahamas must file a country-by-country report with the Minister of Finance.<\/p>\n<p>On the other hand, a surrogate parent entity is an entity in the MNE Group which has been appointed by the group as a sole substitute for the ultimate parent entity to file the country-by-country report in the surrogate parent entity\u2019s jurisdiction of tax residence on behalf of the MNE Group. However, this only happens if the surrogate parent entity is resident in The Bahamas and one of the following conditions applies: (i) the ultimate\u00a0parent entity is not required to file a country-by-country report in its jurisdiction of tax residence; (ii) the jurisdiction in which the ultimate parent entity is resident for tax purposes has an International Agreement (as defined in the MNE Act) to which\u00a0 The Bahamas is a party, but does not have a competent authority agreement to which The Bahamas is a party by the time specified in the MNE Act for filing the report; or (iii) there has been a systemic failure of the jurisdiction of tax residence of the ultimate parent entity.<\/p>\n<p>It is also noted that, where there is more than one entity resident in The Bahamas in the\u00a0same MNE Group and any of the conditions set out in the previous paragraph applies, the group may designate one of those entities to file the country-by-country report on behalf of all of the Bahamian entities.<\/p>\n<p>A country-by-country report shall be filed in the form attached in the First Schedule of the MNE Act and must include the following information:<\/p>\n<p>1. Comprehensive financial data, i.e. the amount of revenue, profit or loss before income tax, income tax paid, income tax accrued, stated capital, accumulated earnings, number of employees and tangible assets other than cash or cash equivalents with regard to each jurisdiction in which the MNE Group operates.<\/p>\n<p>2. Identification of each entity of the MNE Group, setting out the jurisdiction of tax residence of such entity and, where different from the jurisdiction of tax residence, the jurisdiction under the laws of which such entity is organized and the nature of the main business activity.<\/p>\n<p>In addition to the provisions of the MNE Act, the Minister of Finance may issue guidelines for complying with the MNE Act. Furthermore, the Minister may require an entity to produce or make available information (whether located inside or outside The Bahamas) to determine the accuracy of the information provided by the entity. Failure to comply with the provisions of the MNE Act or to provide accurate information will result\u00a0in penalty fees. There is a right to appeal any penalty imposed under the MNE Act.<\/p>\n<\/div><\/section><br \/>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-lybqfpvb-854705815cc35b95a79a4cb9e51717f2\">\n#top .av_textblock_section.av-lybqfpvb-854705815cc35b95a79a4cb9e51717f2 .avia_textblock{\nfont-size:11px;\n}\n<\/style>\n<section  class='av_textblock_section av-lybqfpvb-854705815cc35b95a79a4cb9e51717f2 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock'  itemprop=\"text\" ><p><strong>References<\/strong><\/p>\n<ol>\n<li>Country-by-country reporting. OECD. Better policies for better lives. https:\/\/www.oecd.org\/tax\/beps\/country-by-country-reporting.htm.<\/li>\n<li>https:\/\/www.oecd.org\/tax\/beps\/.<\/li>\n<li>MNE Act, section 2.<\/li>\n<\/ol>\n<\/div><\/section><br \/>\n<div  class='avia-button-wrap av-lybqc9uz-22417e33d2f65b971a75ff1d038c10c0-wrap avia-button-left  avia-builder-el-12  el_after_av_textblock  avia-builder-el-last '><a href='https:\/\/cedsto3.dreamhosters.com\/mbh\/wp-content\/uploads\/2024\/07\/multinational-entities-financial-reporting-act-2018-1.pdf'  class='avia-button av-lybqc9uz-22417e33d2f65b971a75ff1d038c10c0 av-link-btn avia-icon_select-yes-right-icon avia-size-large avia-position-left av-icon-on-hover avia-color-theme-color'  target=\"_blank\"  rel=\"noopener noreferrer\" ><span class='avia_iconbox_title' >DOWNLOAD PDF<\/span><span class='avia_button_icon avia_button_icon_right' aria-hidden='true' data-av_icon='\ue879' data-av_iconfont='entypo-fontello'><\/span><\/a><\/div><\/p><\/div><div class='av-flex-placeholder'><\/div>\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-ml8l8-fc4ca9ef390efc6751d7f1cc945556a4\">\n.flex_column.av-ml8l8-fc4ca9ef390efc6751d7f1cc945556a4{\nbackground-color:#ffffff;\n}\n<\/style>\n<div  class='flex_column av-ml8l8-fc4ca9ef390efc6751d7f1cc945556a4 av_one_fourth  avia-builder-el-13  el_after_av_three_fourth  avia-builder-el-last  flex_column_table_cell av-equal-height-column av-align-bottom  '     ><\/div><\/div><!--close column table wrapper. Autoclose: 1 --><\/div><\/div><\/div><!-- close content main div --><\/div><\/div>\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-g69rw-c1a34518c2e41d1372a03ff13a03824d\">\n.avia-section.av-g69rw-c1a34518c2e41d1372a03ff13a03824d{\nbackground-color:#ef8b22;\nbackground:linear-gradient( to right, #ef8b22, #fbb14a, #ef8b22 );\nmargin-top:0px;\nmargin-bottom:-63px;\n}\n<\/style>\n<div id='av_section_3'  class='avia-section av-g69rw-c1a34518c2e41d1372a03ff13a03824d main_color avia-section-no-padding avia-no-border-styling  avia-builder-el-14  el_after_av_section  avia-builder-el-last  avia-bg-style-scroll av-minimum-height av-minimum-height-custom av-height-custom  container_wrap fullsize'   data-av_minimum_height_px='40'><div class='container av-section-cont-open' style='height:40px'><div class='template-page content  av-content-full alpha units'><div class='post-entry post-entry-type-page post-entry-460'><div class='entry-content-wrapper clearfix'>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-b2fpw-6fd98673962b164d060f84264372aaf6\">\n#top .hr.hr-invisible.av-b2fpw-6fd98673962b164d060f84264372aaf6{\nheight:50px;\n}\n<\/style>\n<div  class='hr av-b2fpw-6fd98673962b164d060f84264372aaf6 hr-invisible  avia-builder-el-15  avia-builder-el-no-sibling '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n<\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":674,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-460","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/cedsto3.dreamhosters.com\/mbh\/wp-json\/wp\/v2\/posts\/460","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cedsto3.dreamhosters.com\/mbh\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cedsto3.dreamhosters.com\/mbh\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cedsto3.dreamhosters.com\/mbh\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cedsto3.dreamhosters.com\/mbh\/wp-json\/wp\/v2\/comments?post=460"}],"version-history":[{"count":5,"href":"https:\/\/cedsto3.dreamhosters.com\/mbh\/wp-json\/wp\/v2\/posts\/460\/revisions"}],"predecessor-version":[{"id":1236,"href":"https:\/\/cedsto3.dreamhosters.com\/mbh\/wp-json\/wp\/v2\/posts\/460\/revisions\/1236"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cedsto3.dreamhosters.com\/mbh\/wp-json\/wp\/v2\/media\/674"}],"wp:attachment":[{"href":"https:\/\/cedsto3.dreamhosters.com\/mbh\/wp-json\/wp\/v2\/media?parent=460"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cedsto3.dreamhosters.com\/mbh\/wp-json\/wp\/v2\/categories?post=460"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cedsto3.dreamhosters.com\/mbh\/wp-json\/wp\/v2\/tags?post=460"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}