The Bermuda government has amended its Economic Substance Regulations 2018 legislation, passed at the end of 2018, to implement the European Union's economic substance requirements.
The definition of 'relevant activities' in the law has now been significantly extended as regards holding companies and intellectual property (IP) entities, with a description of their core-income generating activities; and regarding the enhanced IP economic substance requirements, including 'high-risk IP activities'.
The legislation will in some cases require changes to existing business models, says law firm Conyers Dill & Pearman.