To fulfil its commitment to international regulatory obligations set out by the Organisation for Economic Cooperation and Development (OECD), the Republic of Seychelles has introduced domestic legislation addressing Country by Country Reporting (CbCR).
As a result, the Seychelles Revenue Commission (SRC) has requested any Multinational Enterprise Group registered in Seychelles to provide further information by completing a questionnaire by 3rd January 2022 (within 14 days of this memo).
See the Letter for the Questionnaire on MNE below.
Here is a summary of the obligations and actions required if your entity is deemed in-scope.
What is Country by Country Reporting (CbCR)?
CbCR is part of Action 13 (Re-examine Transfer Pricing Documentation) of the OECD Base Erosion and Profit Shifting (BEPS) Action Plan, arising from the suggestion that multinational groups should file a new annual return to tax authorities.
The CbCR is designed to provide tax authorities visibility on how multinationals allocate revenues, profits before tax and other financial information across their global group. The reporting would also include the names of each group entity and their related activities.
For better clarity on CbCR, please refer to the following presentation issued by the Seychelles Revenue Commission.
See the the Tax Agent Country by Country Reporting Presentation below.
How to determine if my entity is in-scope for CbCR?
The Seychelles legislation stipulates that entity(ies) forming part of a Multinational Enterprise Group (MNE) are in-scope of the CbCR obligations, meaning:
Any group that includes two or more enterprises, which are tax resident in different jurisdictions; or includes an enterprise that is tax resident in one jurisdiction and is subject to tax concerning the business carried out through a permanent establishment in another jurisdiction; AND
Enterprises having a total consolidated group revenue of EUR 750 million or more in the 2018 financial year (and any financial year after).
Actions Required
If a Seychelles entity (IBC or Foundation) does not meet the above definition of MNEs, it will not fall in the scope of the CBCR requirements.
On the other hand, if both conditions listed in the above definition of MNEs applies to a Seychelles entity (IBC or Foundation), the SRC requires that the attached Questionnaire be duly completed and returned to us.
See the fillable questionnaire below.
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