Fact Sheet – Economic Substance Requirements
Bermuda is a world-respected platform for global business that welcomes top-quality corporate brands. The Bermuda government is committed to tax transparency, compliance and implementation of new European Union (EU) requirements. The island implemented reforms with the passage of the Economic Substance Act 2018 and is now offering incentives to affected companies to encourage job creation and help them fulfill their substance obligations.
The new legislation was adopted to meet requirements outlined by the EU’s inter-governmental Code of Conduct Group (CoCG) (Business Taxation). Starting January 1, 2019 for new companies and July 1, 2019 for existing companies, substance requirements will affect entities carrying out: banking, insurance, fund management, financing & leasing, headquarters, shipping, intellectual property, distribution & service centres, and related holding companies.