Continuing its ongoing commitment to the development and maintenance of the very highest standards of economic and financial propriety, the Bermuda Government has tabled legislation that embraces a global initiative to combat base erosion and profit shifting (BEPS).

The legislation, which was tabled in the House of Assembly on 7 December 2018 is entitled 'The Economic Substance Act 2018'. The Act provides a statutory framework for determining the extent to which it will be necessary for a relevant company conducting relevant activities to maintain economic substance in Bermuda.

We do not consider that structures seeking to exploit BEPS are at all prevalent in Bermuda, but Bermuda is committed as a jurisdiction to assisting the international community in the preservation of standards of fiscal propriety, wherever possible.

Walkers Bermuda has been actively involved from the outset in the development of the legislation and we will continue to work with government and our colleagues in the financial services community to ensure that the rules are clear in their meaning and proportionate in their effect.

Regulations and guidance notes are expected to be released shortly, which will contain the detail necessary for us to properly advise you of the likely impact of the draft legislation on your business. We will provide further communications and guidance at that time.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.