Legal Update: New Bahamas Legislation to Satisfy EU Substance Requirements

 

In 2017, the European Union Code of Conduct Group extended its work on tax matters from its Member States to assessing the tax regimes of a number of other jurisdictions.   All of the leading global financial centres committed to eliminating certain domestic regimes and implementing other global standards by the end of 2018, and The Bahamas made commitments to address the following by way of legislation:

  • Removing ring fencing – where advantages are ring fenced from the domestic market so that they do not affect the national tax base.
  • Requiring substantial economic presence for entities involved in certain business activities to ensure that tax advantages are aligned with real economic activity.
  • Implementing the Base Erosion and Profit Shifting (BEPs) minimum 5 standards established by the Organization for Economic Cooperation and Development (OECD) /G20.

Graham Thompson provides a high-level summary of the new legislation [New Bahamas Legislation Update]:

  • The Register of Beneficial Ownership Act, 2018 (“ROBO”)
  • Commercial Entities Substance Requirements Act, 2018 (“CESA”)
  • Removal of Preferential Exemption Act, 2018 (“RPEA”)

Read it here New Bahamas Legislation Update or by clicking the PDF document icon at the top of this page.