Cayman Islands Removes Subsidiary Clause From its Economic Substance Act

In order to appease the European Union's Code of Conduct Group (Business Taxation), the Cayman Islands government have made substantial amendments to the urgent 'economic substance' legislation ratified at the end of 2018.

The new regulations have been published; effectively extending the act's meaning of relevant entities to include all foreign companies that are tax-resident in the Cayman Islands, irrespective of the location of their main supervision and control. The specific exclusion clause for investment funds however, still holds as national law.