Bermuda

As part of the Registrar of Companies’ project to introduce a new online registry system for all corporate filings and fee collections, the Registry updated the annual declaration forms applicable to companies, partnerships and limited liability companies in December 2020.  These forms have been amended to include a description of standardised business activity, relevant activity and financial year end.  The amended forms came into effect on 15 December 2020 for all new registrations, and all declarations due by 31 January 2021 would have been submitted in the new format.

Cayman Islands

In the last issue, we reported on the requirements relating to submission of economic substance returns and forms via a new electronic portal maintained by the Department for International Tax Cooperation (DITC).  The portal is now available and also accepts registration from outsource service providers.  The DITC has confirmed that entities are able to submit economic substance notifications (ESNs) for the financial year commencing in 2020, with the submission of ESNs remaining a prerequisite to filing annual returns.  Entities that wish to file their ESNs in advance of dissolving or winding up during the 2021 financial year may do so via the portal.

In addition to the ESN, a relevant entity carrying on a relevant activity is required to submit an economic substance return (ES Return) to the Tax Information Authority.  ES Returns must be made within 12 months after the end of each financial year of the relevant entity commencing on or after 1 January 2019, but the reporting deadlines applicable for this first year have been extended as follows:

Period End Date (for purposes of the ES Return)ES ObligationDeadline
31 December 2019 – 30 April 2020ES return (all except IP Business)30 April 2021
1 May 2020 – onwardsES returns12 months after the period end date
31 December 2019 – 29 February 2020ES Return with Type Income: Relevant Activity – IP Business and Form for Entity Tax Resident in Another Jurisdiction28 February 2021
1 March 2020 – onwardsES Return with Type Income: Relevant Activity – IP Business and TRO12 months after the period end date

 

Updated versions of the sample ES Returns and form for entity tax resident in another jurisdiction can be accessed here.

Lastly, effective 3 December 2020, the International Tax Co-operation (Economic Substance) Law was amended by substituting the word “Act” for “Law” in its title pursuant to the Citation of Acts of Parliament Act, 2020.  Such re-naming applies to each Cayman Islands enactment that was a Law before 3 December 2020.

Share
Twitter LinkedIn Email Save as PDF
More Publications
12 Mar 2021 |

Material adverse change clauses in light of the Covid-19 pandemic

Experts from each of our key global offices provide jurisdiction specific advice and answer question...

14 Dec 2020 |

Technology & Innovation Update Q4 2020

Technology & Innovation Update Q4 2020

Contributors: Peter Colegate
14 Dec 2020 |

Economic Substance update Q4 2020

Economic Substance update Q4 2020

18 Aug 2020 |

Technology & Innovation update Q3 2020

In each quarterly issue of the Appleby Asia Alert, we bring you the latest offshore legislative and ...

Contributors: Peter Colegate
18 Aug 2020 |

Economic Substance update Q3 2020

The latest Economic Substance updates announced by the relevant authorities in the BVI, Cayman and B...

18 Aug 2020 |

The facilitation of cross border restructurings in Bermuda, the British Virgin Islands and the Cayman Islands

In this update, we consider the powers and discretion of the domestic courts in Bermuda, the BVI and...

26 May 2020 |

Technology & Innovation Update Q2 2020

Technological developments have been accelerating at an unprecedented pace in Asia - the first regio...

Contributors: Peter Colegate
25 Feb 2020 |

Economic Substance update Q1 2020

On 18 February 2020, the Economic and Financial Affairs Council (ECOFIN) announced that Bermuda and ...

18 Sep 2019 |

Offshore listing Vehicles to benefit from the Shanghai - London stock connect

Offshore listing Vehicles to benefit from the Shanghai - London stock connect