Economic Substance Filing Process in the Bahamas - April 2020
The Commercial Entities (Substance Requirements) Act, 2018 (CESRA or the “Act”) entered into force in the Bahamas on 1 January 2019. CESRA seeks to ensure that commercial entities that are both resident in the Bahamas for tax purposes, and engaged in any of nine specified relevant activities, have adequate substance in the jurisdiction.
Our previous memo (sent in June 2019) provides a synopsis of the scope and application of CESRA.
Our latest memo provides guidance to commercial entities on the procedure and deadlines for making a substance filing in order to ensure compliance with CESRA.
We have been advised that there are pending amendments to the Act and will provide a further update once these amendments are passed.