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ARTICLE · 21 JANUARY 2019

Economic Substance: Changes To Bermuda Investment Funds Act

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In December 2017, and as part of its ongoing commitment to assist the EU in combatting harmful tax practices Bermuda joined a group of international financial centres committed

BermudaFinance and Banking
Sarah Demerling
Sarah Demerling
Daniel Wood
Daniel Wood
Natalie Neto
Natalie Neto
Denise Wong
Denise Wong
Hughie Wong
Hughie Wong
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Background

In December 2017, and as part of its ongoing commitment to assist the EU in combatting harmful tax practices Bermuda joined a group of international financial centres committed to implementing legislation for economic substance requirements.

Pursuant to its commitment, Bermuda has enacted the Economic Substance Act 2018 (the "EU Substance Act") and the Economic Substance Regulations 2018 (the "EU Substance Regulations") which are operative with effect from 1 January 2019.

The new legislation follows extensive consultation by the Bermuda Government with the OECD, the Financial Action Task Force ("FATF") and the EU Code of Conduct Group ("COCG") and is intended to meet the economic substance requirements outlined in the scoping paper issued by the COCG.

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