In close cooperation with our global partners and advisors, our specialists support clients on all aspects of compliance with economic substance legislation, including full structure reviews, ongoing compliance issues and implications for outsourcing arrangements.
International financial centers in numerous jurisdictions including BVI, Cayman, Guernsey and Jersey have passed laws on economic substance, which have effect from 1 January 2019, to meet the requirements of the EU Code of Conduct Group.
The OECD has launched consultation on similar principles and is expected to introduce its own economic substance requirements in due course. The common objective of these laws is to ensure certain entities demonstrate economic substance in the jurisdictions in which they are tax resident.
