Economic Substance – Update

You will have seen our earlier briefing entitled “Economic Substance Explained – Guernsey’s position”. That briefing provided an overview of Guernsey’s Economic Substance Regime and should be read in conjunction with this update.

Since providing this original briefing, updated guidance notes in relation to economic substance requirements have been issued on 22 November by Guernsey, Isle of Man and Jersey, expanding upon those originally issued in April 2019 and providing welcome clarity on certain areas.

Indeed, the updated notes provide long awaited guidance on a number of industry specific activities caught by the Economic Substance Regime, namely Insurance, Shipping and IP companies (including High Risk IP), as well as some general guidance on aspects of the new regime which, to date, had been unclear. To read our summary of the key points addressed in the summary, please click here.