Economic Substance Amendment Act 2026
Passed
Simplified for You
What this bill does
This bill transfers the responsibility for monitoring and enforcing Bermuda's economic substance rules from the Registrar of Companies to the Corporate Income Tax Agency. It gives the Agency new powers to inspect businesses, demand documents, visit premises, and impose fines on companies that don't meet economic substance requirements.
If Passed (Voted Yes)
The Corporate Income Tax Agency will take over all economic substance compliance work, creating a single government body handling international tax matters
The Agency will have stronger enforcement powers, including the ability to enter business premises, demand information, and impose daily fines ranging from $100-$500 for non-compliance
Companies failing to meet economic substance requirements will face escalating penalties up to $250,000, with courts able to restrict or shut down non-compliant businesses
If Rejected (Voted No)
The Registrar of Companies continues to handle economic substance compliance as it currently does
The current enforcement system remains in place without the enhanced inspection and penalty powers proposed for the Agency
Bermuda maintains separate agencies for economic substance and other international tax matters instead of consolidating them
Who It Affects
This primarily affects businesses registered in Bermuda that must comply with economic substance requirements, particularly international companies and their officers. It also impacts the Corporate Income Tax Agency staff who will gain new responsibilities and enforcement powers.
Vote counts are not published.
The Bermuda Parliament does not publicly record individual vote counts or how each member voted.
Write to your MP about this
Related Bill
Economic Substance Amendment Act 2026
Download bill PDF