Bermuda Issues Final Economic Substance Guidance Notes For Shipping Sector

On 7 July 2020, Bermuda's Minister of Finance issued the final Revised Guidance Notes in relation to the Economic Substance Act 2018 (the "Act"). The Revised Guidance Notes provide sector-specific guidance for a number of relevant activities within scope of the Act. The sector-specific guidance for the shipping sector is as follows:

An entity will be carrying on the Relevant Activity of "shipping" if it engages in any of the following activities involving the operation of a ship anywhere in the world other than in the territorial waters of Bermuda:

1. transporting, by sea, passengers or animals, goods or mail for a charge;
2. renting or chartering of ships for the purpose described in paragraph (a);