New Economic Substance Legislation in the Bahamas - June 2019
The Commercial Entities (Substance Requirements) Act, 2018 (“CESRA” or the “Act”), has entered into force in the Bahamas with effect from 1 January 2019. CESRA requires commercial entities engaged in certain relevant activities to have economic substance in the Bahamas.
This legislation is similar to other substance laws being introduced in numerous other jurisdictions worldwide, in response to the European Union and OECD initiatives to prevent harmful tax practices and profit shifting.
CESRA introduces reporting requirements for all Bahamas commercial entities, whether or not they are in-scope of the substance requirements. It also enables significant penalties for non-compliance by entities that are in-scope of the substance requirements.
Please read our briefing for more information.