COVID-19 Economic Substance Update

All of the offshore jurisdictions in which Appleby operates have implemented legislation to require certain entities to maintain adequate levels of economic substance in the jurisdiction. The COVID-19 pandemic has created unprecedented circumstances for business operations globally.

The economic substance laws and regulations remain in place so it is still important to consider whether entities are within scope and, if they are, to ensure compliance.  But in the light of the pandemic a number of jurisdictions have provided guidance on how to comply while travel restrictions remain in place.

Economic substance requirements prior to COVID-19

The economic substance regimes (ES Regime) of the British Overseas Territories and the Crown Dependencies vary slightly between the jurisdictions, but share certain core concepts: