Cayman Islands Update: Additional Updates On Economic Substance

Further to our previous update¹, the Department for International Tax Cooperation ("DITC") has issued an Industry Advisory² on 12 November 2020 (the "Advisory") in relation to Economic Substance ("ES") matters.

ES Sample Returns and Form

The Advisory contains the following sample ES returns and updated form (collectively the "ES Returns"):

(a) Sample Economic Substance Return³;

(b) Sample Economic Substance Return for Pure Equity Holding Companies⁴;

(c) Sample Economic Substance Return showing the additional questions for High Risk IP Companies⁵; and

(d) Updated Form for Entity Tax Resident in Another Jurisdiction (Sample)⁶.

The Advisory includes a link to notes⁷ published by the DITC, which explain the purpose of the ES Returns and provide a high-level overview of the required data points.