Guernsey publishes requirements for Economic Substance

Guernsey publishes requirements for Economic Substance

Guernsey has published the Substance Requirements for 2021, which expands the economic presence requirements for partnerships. As previously explained in GSCCA Circular 18 of 11 May 2021, partnerships are required to fully meet the commitments made by Guernsey to the EU Code of Conduct (Business Taxation) Group in 2018.

These regulations imply:

• General partnerships formed in Guernsey;
• Limited partnerships (with or without a legal entity) formed in accordance with the Limited Partnerships Act (Guernsey) 1995;
• Limited partnerships formed under the Limited Liability Partnerships (Guernsey) Law 2013;
• Foreign partnerships (including limited partnerships and limited partnerships) formed outside of Guernsey that are operated in Guernsey and carry on business in Guernsey.

The 2021 Substance Requirements will take effect on June 30, 2021. According to Circular 18, the requirements will be effective for reporting periods beginning on or after January 1, 2022, for partnerships existing as of June 30, 2021. New partnerships (partnerships created on or after July 1, 2021) will operate during reporting periods beginning on or after July 1, 2021.

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