Currently, Bermuda’s ES Law applies to exempted and local companies, exempted and local limited liability companies, overseas permit companies and partnerships that elect to have separate legal personality that carry on a “relevant activity”. It is anticipated that the legislation will be revised to extend its application to all partnerships not just those with separate legal personality.
Bermuda’s economic substance legislation will continue to develop as needed to ensure ongoing compliance with the scoping paper issued by the European Union’s Code of Conduct Group (Business Taxation) in June 2018. There may also be minor changes relating to ‘levelling up’ between all offshore jurisdictions to reduce any motivation to ‘island-hop’.