Economic Substance Update Q4 2020

This quarter continues to see significant developments in economic substance requirements in the offshore jurisdictions. The Cayman Islands has now been formally removed from the EU's list of non-cooperative jurisdictions in tax matters (the "EU's blacklist"). Bermuda issued an updated version of the economic substance guidance notes, providing more clarity and examples for the industry. In addition, further guidance has been provided by the relevant authorities in these jurisdictions in relation to the portals and the information required to be submitted.

BERMUDA

NEW ES GUIDANCE NOTES

The Ministry of Finance issued the Revised Guidance Notes – Economic Substance Requirements – General Principles (Guidance Notes) in relation to the Economic Substance Act 2018.  The Guidance Notes became effective on 18 September 2020 and serve to clarify certain matters covered in the previous version.  For instance, the Guidance Notes clarify that entities will be deemed to