The European Union has announced that, with effect from 12 March
2019, Bermuda has been added to the list of non-cooperative
jurisdictions for tax purposes.
Bermuda has enacted the Economic Substance Act 2018 and the
Economic Substance Regulations 2018, which came into force with
effect from 1 January 2019. The Bermuda Government has advised that
Bermuda's inclusion on the list was as a result of a technical
failure to address an issue identified by the required deadline,
rather than as a result of its adverse assessment of the
legislation that is now in force.
The UK Government, through HM Treasury, has confirmed its
understanding that Bermuda has legislated to address the issue and
that it expects Bermuda to be removed from the list at the next
available opportunity. We understand that Bermuda is working
towards being, and expects to be, removed from the list as early as
May 2019 (when the next meeting of the EU's Economic and
Financial Affairs Council will be
