The introduction of the European Union’s Economic Substance Act 2018 (ESA) came into effect at the start of 2019, and it has implications for multinational firms conducting businesses in low and no-tax jurisdictions around the world.
Organisations conducting relevant activities in Bermuda – banking, insurance, shipping, intellectual property (IP), headquarters, and holding companies – are required to submit data to the Registrar of Companies who will then make a determination if they fit the substance requirements. The implications of non-compliance range from civil penalties to fines to imprisonment if the relevant activities and core income generating activities are not being met.
Are you ready for the July 2019 deadline?
Download KPMG in Bermuda’s overview of the ESA, and contact us today to get ahead of the next regulatory milestone.