Latest Developments In Bermuda's Economic Substance Regime

Economic Substance Amendment Act 2019

The Economic Substance Amendment Act 2019 (Amendment Act) became operative on 28 June 2019. The Amendment Act creates an exemption for entities that are resident for tax purposes in a jurisdiction outside of Bermuda (provided such jurisdiction is not on the EU's list of non-cooperative jurisdictions for tax purposes). This important development will place Bermuda on a level playing field with other jurisdictions that are subject to the EU's economic substance requirements.

Information received by the Registrar of Companies (RoC) from an entity to support its non-resident status will be provided to the foreign competent authority of the jurisdiction where the holding entity, the ultimate parent entity, the owner or the beneficial owner of the non-resident entity is incorporated, formed and registered or resident.