Cayman Islands Economic Substance Notification
The International Tax Cooperation (Economic Substance) Law, 2018 (ES Law) came into effect on 1 January 2019 which require “legal entities” conducting relevant activities to report certain information on their activities.
An amended guidance issued by the Department of International Tax Cooperation (DITC) on 17 September 2019 is available for download at the link below explaining the Economic Substance Notification (ESN) requirements.
http://www.tia.gov.ky/pdf/Economic_Substance_-_Guidance_-_v2.0.pdf
ESN is required to be submitted to the DITC and will be a prerequisite to filing the Annual Return which means the Annual Return and Annual License Fee can only be filed and paid after the ESN filing has been completed.
Attached is the ESN questionnaire for completion, please submit the questionnaire with a signed directors’ resolution to us no later than 31 January 2020 in order for us to prepare the required information for submission together with the Annual Return.
Please note that this ESN submission will involve a separate invoice, in addition to the annual license fee invoice for 2020, which has already been provided to you.
If you have not determined the classification of your Cayman Islands company, in order to know if your company is fully compliant with the economic substance requirements, it is strongly recommended to obtain a legal opinion issued by a practising lawyer in the Cayman Islands to ensure full compliance with the substance legislation. We are happy to assist further if you have the requirement for the above.
If you have further queries, please contact your Keyway representative for assistance.