Economic Substance Act Bermuda 2018 (ESA)
In response to the requirements of the EU Code of Conduct Group, Bermuda has passed the Economic Substance Act 2018 (ESA) which was effective 1 January 2019. Entities which may fall within the scope of the ESA should consider its impact and its potential application to their particular business and circumstances. Outsourcing core activities in Bermuda will be acceptable in some cases.
We can provide advice and assistance to ensure that your Bermuda entity complies with the economic substance requirements.
ESA 2018 Bermuda (updates)
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 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.