Bahamas: Updated CRS guidance
The Bahamas Competent Authority issued an updated version of the common reporting standard guidance.
Updated CRS guidance
The Bahamas Competent Authority on June 21, 2024, issued an updated version of the common reporting standard (CRS) guidance containing the following updates:
- Section IV (CRS jurisdictions): The section on reportable jurisdictions has been updated to note that a trust classified as a financial institution with one or more trustees residing in Bahamas will be considered reportable in Bahamas, regardless of its tax residency in a different participating jurisdiction. However, if the trust submits all CRS reports of its reportable accounts to the participating jurisdiction where it is a tax resident, it will not have reporting obligations in the Bahamas.
- Section VII (entity specific issues): A new note has been added under the “Trusts as Financial Institutions” section, which notes that for trusts classified as financial institutions, the account balance must reflect the total value of the trust’s property for the settlor, protector, or any other natural person exercising ultimate effective control of the trust, including through a chain of control or ownership. However, discretionary beneficiaries who receive distributions during the reporting year, the account balance will be reported as “NIL,” and the total gross amount paid or credited to them will be reportable as gross payments.
Read a July 2024 report prepared by the KPMG member firm in the Bahamas
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