Legislative requirements requiring entities incorporated or formed in Bermuda carrying on specific business activities to demonstrate adequate economic substance have been introduced in a number of offshore jurisdictions, including Bermuda, in connection with the European Union’s Intergovernmental Code of Conduct (Business Taxation) Group (the “Code of Conduct Group”).
The Economic Substance Act 2018 (the “ESA”) and Economic Substance Regulations 2018 as amended came into operation on 31 December 2018 (collectively known as the “ESA”).
The ESA Regulations apply to all entities seeking to incorporate or form in Bermuda with effect from 1 January 2019. Existing entities will be granted a transition period in which to comply with the new ESA Regulations.
CHW can assist you to determine whether your entity falls within the scope of the Economic Substance Regulations and to assess the impact of these regulations.