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ARTICLE · 13 DECEMBER 2019

Bermuda Economic Substance And Investment Funds Amendment Legislation Tabled

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Bermuda has tabled amendment legislation in the House of Assembly in the form of the Economic Substance Amendment (No 2) Act 2019

BermudaFinance and Banking
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Bermuda has tabled amendment legislation in the House of Assembly in the form of the Economic Substance Amendment (No 2) Act 2019 (the "Economic Substance Amendment Act") and the Investment Funds Amendment (No 2) Act 2019 (the "IFA Amendment Act"). The amendments follow extensive consultation by the Bermuda Government with the OECD and the EU Code of Conduct Group and are in furtherance of the implementation by Bermuda of legislation that embraces a global initiative to combat base erosion and profit shifting ("BEPs").

Executive Summary

  • The Economic Substance Amendment Act introduces changes to the definitions of the relevant activities of "holding entity" and "financing and leasing", as well as to the definition relating to local entities.

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