This publication has been prepared for the assistance of those who are considering the formation or continued operation of a Bermuda-based entity. It deals in broad terms with the Bermuda law requirements for such entities to have economic substance in Bermuda. It is not intended to be exhaustive but merely to provide an overview of the legislation which we hope will be of use to our clients. We recommend that our clients and prospective clients seek legal advice in Bermuda on their specific circumstances and proposals before taking steps to implement them.
Please note that at the present time Bermuda is awaiting confirmation that its economic substance legislation satisfies the requirements of the European Union’s Economic and Financial Affairs Council (ECOFIN) sufficient to be regarded as a cooperative jurisdiction for tax purposes. Additional amendments may be made to Bermuda’s legislation in future to bring it into line with that of other jurisdictions. Clients will be notified of any such changes in a bulletin.
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Economic Substance Requirements for Bermuda-Based Entities