Bahamas Urgently Revises Economic Substance Act Following Dissatisfaction from Brussels

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The Bahamas government has scheduled key legislation adjusting its Commercial Entities (Substance Requirements) Act, to evade being placed on the European Union’s blacklist of non-cooperative jurisdictions (this list is different from the money laundering blacklist).

The Act was passed into national law last year in December 2018, was meant to placate the EU Code of Conduct (Business Taxation) Group’s requests regarding businesses physical presence in a country, however seemingly lacked substance in its treatment of residency criteria and holding companies. The EU is likely to amend the blacklist in the following months, with another six countries at risk of being added.