The Cayman Islands has entered into bilateral agreements with each of the Member States of the European Union in relation to the reporting of savings income information. To effect the implementation of these agreements the Reporting of Savings Income Information (European Union) Law (the ROSII Law), came into force on 1 July 2005 and is supported by detailed regulations which were made on 23 August 2005.
The Tax Information Authority is the Cayman Islands competent authority for the purposes of these savings income information reporting requirements. It is responsible for receiving the prescribed information from local organizations which qualify as “paying agents” and for transmitting that information to its counterpart competent authorities in the EU Member States. Other principal functions of the Tax Information Authority include issuing Tax Residence Certificates and issuing Guidance Notes.
Guidance Notes are issued by the Tax Information Authority for the purpose of giving practical guidance to agents and other persons with respect to any requirements under the ROSII Law and Regulations. Although they are not a legal document and do not have the same formal status as the ROSII Law or Regulations, the Guidance Notes complement the legislation and provide practical assistance to those who fall within the scope of the reporting requirements. The Guidance Notes are currently in version 2.0 (issued in November 2006) and are accompanied by an Explanatory Memorandum.
Savings Income Reports are required to be made in a format prescribed by the regulations. Standard forms (schedules) and instructions for completion of the forms are provided by the Department for International Tax Cooperation.