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Economic Substance Legislation in the British Virgin Islands

11 January 2019

As part of its long standing commitment to tax transparency, the British Virgin Islands has passed legislation prescribing economic substance criteria and reporting requirements for certain tax resident entities. The Economic Substance (Companies and Limited Partnerships) Act, 2018 (the Act) came into force on 1 January 2019 and requires British Virgin Islands companies and limited partnerships that are tax resident and carrying out ‘relevant activities’ to show economic substance. The new legislation applies to existing and new BVI entities.

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Bermuda proposes Economic Substance Requirements

21 December 2018

Bermuda has tabled a bill to implement legislative changes addressing concerns raised by the EU Code of Conduct Group regarding economic substance by 31 December 2018. On 7 December 2018, legislation was tabled in the House of Assembly proposing economic substance requirements on certain Bermuda companies and limited liability companies.

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