Economic substance legislation has been introduced in each of our offshore jurisdictions, requiring all businesses with entities in those jurisdictions to carefully consider whether they fall within scope and if so, what they need to do in order to ensure that they are in compliance with the relevant legislation.
While the requirements are similar in each jurisdiction, you cannot always assume that they are the same. We have put together a cross-jurisdictional Q&A factsheet containing high level overviews of the economic substance requirements in each of our offshore jurisdictions. View the pdf here.
The answers to the Q&A only provide a generic guide to some of the legal provisions which will be relevant. Specific practical matters relating to your business will also need to be considered.
In particular, there are particular additional elements in respect of "high risk" intellectual property business, which are not covered specifically in the guide below such as automatic exchange of information provisions and a rebuttable presumption that the economic substance requirements have not been met.
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.