NEWS & INSIGHTS
Economic Substance legislation has been introduced in the Crown Dependencies and British Overseas Territories.
The legislation is designed to improve tax transparency and ensure that companies resident in Bermuda, British Virgin Islands, Cayman, Guernsey, Isle of Man and Jersey are not being used to avoid tax in other jurisdictions. The legislation came into effect on 1 January 2019 with reporting to tax authorities due from January 2020.
We are waiting for the comprehensive guidance notes from each jurisdiction. The economic substance requirements will vary depending on the actual activity of the company.
In general economic substance will include:
Not every client will be impacted by this change and we expect that most will meet the substance requirements or will not be caught by the new rules. We are currently working to establish the exact requirements for all our clients and our expert teams will be in touch shortly should this be relevant to you.
The European Union's Economic and Financial Affairs Council (ECOFIN) has removed Bermuda from the list of non-cooperative tax jurisdictions effective today, 17 May 2019.
Jersey Evening Post: Business Panel asks "What are foundations and what are they used for?"
Estera Bermuda’s office hosted Lord Ahmad of Wimbledon, UK Foreign Office Minister of the Overseas Territories, on 25 April for a business forum for leading business professionals to discuss a range of matters relating to the Island’s economy and opportunities for future growth.