What is Economic Substance?

In response to global OECD Base Erosion and Profit Shifting standards, Anguilla enacted economic substance regulations to ensure that companies incorporated and tax resident in Anguilla demonstrate sufficient substance in the jurisdiction. The economic substance regulations introduce reporting and economic substance requirements for Anguillan legal entities that conduct “relevant activities”.

Is Your Company Affected?

The following diagram can be used to determine if your company is subject to the economic substance requirements in Anguilla:

What is a Relevant Activity?

An Anguillan company or limited partnership is required to meet the economic substance requirements insofar as it is engaged in any of the following ”relevant activities”:

What are the Requirements?

Legal entities that engage in a relevant activity are required to:

• Be managed and directed in Anguilla

• Retain full-time employees with relevant qualifications in Anguilla

• Maintain an adequate physical presence in Anguilla

• Incur adequate operating expenditure in Anguilla as necessary to perform the relevant activity

• Undertake “core income generating activities” relating to the relevant activity in Anguilla

Our Services

We provide specialized advice relating to economic substance requirements. Geneva Trust can provide assistance to ensure that your Anguilla entity complies with the economic substance requirements by:

• Assessing how the Economic Substance Act will impact your structure or company;

• Determining the adequate level of economic substance needed to demonstrate a physical presence in the jurisdiction; and

• Outsourcing core activities and providing adequate premises in Anguilla.