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Economic Substance Declaration portal now available
Preparing for the Economic Substance Declaration
On 1 May 2020, the Bermuda Registrar of Companies launched its economic substance declaration (ESD) portal to facilitate the submission of the declaration required under the Economic Substance Act 2018 (ESA).
How Deloitte can assist…
Deloitte can assist potentially affected entities assess the application of the ESA and take steps to ensure compliance with the economic substance requirements as follows:
- Classify structures on an entity-by-entity basis to flag those that undertake a ‘relevant activity’
- Conduct a gap analysis to consider the current and future compliance for those entities that undertake ‘relevant activities’
- Consider any operational or structural changes that may be required to meet the substance requirements outlined including recruitment of new staff and assessing qualifications of existing staff
- Assist with preparation of the economic substance declaration
The ESD must be submitted no later than six months after the last day of each relevant financial period. The first relevant financial period will be the first financial year commencing on or after 1 January 2019. For entities with a financial year end of 31 December, the first ESD will be due by 30 June 2020.
Looking for resources?
See below list of helpful links related to Economic Substance:
- Economic Substance Act 2018
- Economic Substance Regulations 2018
- Economic Substance Guidance Notes 2019
- Economic Substance Sector Specific Guidance Notes (Draft)
For more information or if you have any questions, please contact a member of Deloitte Bermuda’s Tax leadership team (below).
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