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13.4.2. Documentation Requirements

Country-by-Country (CbC) Reporting

Guernsey has introduced Country-by-Country reporting requirements, which came into force on 1 January 2017. The CbC reporting requirements are applicable for fiscal years beginning on or after 1 January 2016 for MNE groups meeting a consolidated group revenue threshold of EUR 750 million in the previous year. The requirements are in line with the guidelines developed as part of Action 13 of the OECD BEPS Project.

The requirement to submit a CbC report applies for ultimate parent entities resident in Guernsey. An MNE group may, under certain conditions, designate a different constituent entity within the MNE group to be the reporting entity (a "surrogate parent entity"), whereby the reporting obligations will apply to that surrogate parent entity. The requirement to submit also applies for local non-parent constituent entities if:

  • The ultimate parent entity is not required to file a CbC report in its jurisdiction of residence;
  • The ultimate parent entity's jurisdiction of residence does not have a competent authority agreement in place for the automatic exchange of CbC reports with Guernsey by the time the report would be due; or
  • There is a systemic failure of the ultimate parent entity’s jurisdiction of residence for exchange, and this has been notified to the local entity.

If there are multiple local entities, one may be selected to submit the CbC report on behalf of the others. The local filing requirement will not apply if a surrogate parent entity has filed a CbC report for the year in another jurisdiction, and that report will be exchanged with Guernsey.

The deadline for filing the CbC report is 12 months following the close of the fiscal year concerned. The deadline for the first CbC reports was extended to 31 March 2018.

The report is to be submitted via the IGOR using the OECD XML schema.

Further, all Guernsey entities of an MNE group are required to provide notification on:

  • Whether it is the ultimate parent entity of the group or the surrogate parent entity within six months following the close of the fiscal year; or if neither
  • The identity and residence of the reporting entity submitting a CbC report on behalf of the MNE group by 30 November following the close of the fiscal year (with a tax return).

Failure to comply with the CbC reporting requirements without a reasonable excuse may attract fines and possible imprisonment for up to one year.

COVID-19 Emergency Measures

In response to the COVID-19 pandemic, Guernsey extended the due date for a constituent entity to provide notification on the identity and residence of the reporting entity submitting a CbC report on behalf of the MNE group for the calendar year 2019 from 30 November 2020 to 28 February 2021. However, the notification deadlines applicable to the ultimate parent entity of the group or the surrogate parent entity remain unchanged.