Bermuda Revises Economic Substance Guidance Notes... Again
In relation to the Economic Substance Act 2018 (the "Act") and related Guidance Notes, and following further discussions with representatives of the European Union, the Minister of Finance has issued the attached Revised Guidance Notes, effective 18 September 2020. The revisions to the prior version of the Guidance Notes (issued by the Minister on 7 July 2020) reflect the following changes:
Section 6 of the Guidance Notes - revisions to clarify that entities will be deemed to be carrying on a relevant activity (and therefore in scope of the Act) whether or not any gross revenue is earned from that relevant activity, while reaffirming that an entity that earns no gross revenue from the activity in a relevant financial period will not be required to satisfy the economic substance requirements in respect of that activity for that period.
Schedule (Sector Specific Guidance)
C (Insurance) - clarifying revisions to Example 2
E (Fund Management) - clarifying revisions to final paragraph
I (Headquarters) - revisions to description of CIGA (a