The Economic Substance Act 2018 – Technical Alert 02-2019
The Economic Substance Act 2018 (the “ESA”) has been passed by the Bermuda Parliament and, subject to receiving Royal Assent, is expected to take effect for financial periods starting on or after 1 January 2019. The ESA, once adopted, will require affected companies to file annual economic substance returns (“Returns”) with the Bermuda Registrar of Companies (the “Registrar”). The Minister of Finance has issued further guidance under the Economic Substance Regulations 2018.
Entities which may fall within the scope of the ESA should consider its impact and its potential application to their particular business and circumstances. We can provide advice and assistance to ensure that your Bermuda entity complies with the economic substance requirements.