Economic Substance Data Collection – Cayman Islands

Thank you for your continued support of Portcullis.

You would have received previously our circulars on the introduction of Economic Substance requirements for companies conducting certain activities in the Cayman Islands. The International Tax Co-operation (Economic Substance) Law, 2018 (“ES Law”) which came into effect 1 January 2019 requires applicable legal entities conducting certain types of relevant activity to demonstrate a degree of economic substance within the Cayman Islands. Economic substance is demonstrated by the conduct of certain Core Income Generating Activities (CIGA) that are of central importance to a relevant entity in terms of generating relevant income. The lists of CIGA for each relevant activity is included in the attached Economic Substance Notification (ESN) Data Collection form (Form) in respect of each type of relevant activity.

Your entity is required to file an ESN to the Department of International Tax Cooperation (DITC) by no later than 31 January each year. The ESN must be filed before your Entity can file its Annual Return. Please be informed that the ESN is required for ALL entities. A separate Annual Return must be filed within 12 months of your Entity’s financial year end only if it is determined that it conducts relevant activity.

The attached Form is to assist you with classification of your Entity’s activity to determine if it is within scope of the ES Law and therefore required to meet substance requirements. The information collected within the Form will also enable Portcullis to upload the required information for the ESN.

Required Steps

STEP 1:
• Use the ESN Decision Tree to help you determine if the company comes within scope of Economic Substance legislation.
https://portcullis.co/pdf/1_ESN_Decision%20Tree_Biligual.pdf

• Classify the Company’s relevant activity in the ESN Data Collection Form provided.
https://portcullis.co/pdf/2_ESN%20Data%20Collection%20Form_CaymanBiligual.pdf

• There may be more than one relevant activity and each relevant activity must be identified

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STEP 2:
• Upon completion of all required Data fields. please submit the questionnaire to Portcullis by no later than 31 December 2019 so that we may to prepare the required information for submission to the regulatory authorities prior to/together with your Entity’s Annual Return

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STEP 3:
• Prepare and sign the relevant Directors’ resolution and retain it with a copy of the Form for your corporate records, a template of which is provided here
https://portcullis.co/pdf/3_DirReso_ES%20Law_CAY_English.doc
https://portcullis.co/pdf/3_DirReso_ES%20Law_CAY_Bilingual.doc

• The resolution ensures that proper authority is given to the person who supplies the required information.

You may access the full text of the Guidance – Economic Substance For Geographically Mobile Activities here (with amendments of 17 September 2019)

https://portcullis.co/pdf/4_Economic_Substance_-_Guidance_-_v2.0.pdf

https://portcullis.co/pdf/5_Economic_Substance_-_Guidance_-_v2.0._Amended%20issued%2017.09.2019.pdf

Please feel free to contact your relationship manager is you need any assistance with completion of the form or clarification of the requirements.

The Directors’ resolution in Step 3 is also intended to provide documentary support that the Directors have considered the ES Law and note Company’s obligations under it.

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Applicable Fees

We advise that Portcullis will be charging a fee USD300 for the initial collection, upload and submission of the information. Portcullis cannot be responsible for any determination as to whether the Company is within scope of the ES Law.

Please let us know if you require a formal assessment of your Company and we shall contact a suitable Cayman lawyer in which case separate charges will apply.

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Accounts

Companies that come within scope of the ES Law will be required to submit an ES Annual Return within 12 months of its Financial year end comprising, amongst other things, information on the income and expense attributable to each relevant activity.

Financial accounts will therefore need to be maintained and may need to be provided upon formal request by the Tax Authority. We advise that proper accounting records should be maintained by the Company. If you require assistance with the preparation of accounts, please contact your relationship manager.

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Data Protection Policy

Finally, we take this opportunity to advise that you may now access a copy of Portcullis’s PERSONAL DATA PROTECTION POLICY STATEMENT on our website
https://portcullis.co/privacy/

Thank you for your attention to this matter and we look forward to being of further assistance.

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PORTCULLIS GROUP
www.portcullis.co

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經濟實質資料收集 – 開曼群島

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感謝 貴公司對保得利的持續支持。

想必 貴公司已接獲本公司的通知函，說明在開曼群島經營若干業務的公司必須遵循的經濟實質法規定。2018年國際稅賦合作(經濟實質)法（下稱「經濟實質法」）已自2019年1月1日起實施，其中規定經營若干類型相關業務的法律實體，必須證明在開曼群島境內有一定程度的經濟實質。若相關實體經營若干產生核心收益的業務（下稱「核心收益業務」），而該些業務對該實體產生相關收益而言誠屬關鍵重要者，則該實體即被視為已證明其經濟實質。本函附件「經濟實質通報資料收集表（下稱「資料收集表」）」中羅列了各類型相關業務的核心收益業務。）

貴公司每年必須在1月31日前，向國際稅賦合作處提交經濟實質通報表。 貴公司必須先提交經濟實質通報表，然後才能提交年度申報書。特此告知，所有實體皆須提交經濟實質通報表。實體僅在被認定經營相關業務時，才必須在其財務年度終了後12個月內另行提交一份年度申報書。

附件資料收集表乃為協助貴公司分類貴公司的業務項目，以便判定 貴公司是否屬於經濟實質法的範圍內，而因此必須遵守經濟實質規定。資料收集表所收集的資料，亦可使保得利得以上載經濟實質通報所必要的資料。

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必要步驟

Step 1 (步驟 1)

• 使用經濟實質通報認定樹狀圖，協助貴公司認定貴公司是否屬於經濟實質法範圍內。
https://portcullis.co/pdf/1_ESN_Decision%20Tree_Biligual.pdf

• 分類貴公司在經濟實質通報資料收集表上的相關業務。
https://portcullis.co/pdf/2_ESN%20Data%20Collection%20Form_CaymanBiligual.pdf

• 可能不只一項相關業務，每項相關業務皆須確認

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Step 2 (步驟 2)

• 在所有必要資料欄位皆填寫完成時，請在2019年12月31日之前提交問卷調查表給保得利，本公司即可備妥必要資料，以便在貴公司提出年度申報書之前/同時向主管機關提交。

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Step 3 (步驟 3)

• 製作並簽署相關董事決議書，並將之與資料收集表一併留存，供貴公司存檔備查，下列連結提供制式的董事決議書。
https://portcullis.co/pdf/3_DirReso_ES%20Law_CAY_English.doc
https://portcullis.co/pdf/3_DirReso_ES%20Law_CAY_Bilingual.doc

• 上述決議書確保對提供規定資料的人授予適當權力。

貴公司可透過下列連結取得「地理上可行動業務經濟實質認定細則」全文（經2019年9月17日修正後條款）

https://portcullis.co/pdf/4_Economic_Substance_-_Guidance_-_v2.0.pdf
https://portcullis.co/pdf/5_Economic_Substance_-_Guidance_-_v2.0._Amended%20issued%2017.09.2019.pdf

倘 貴公司在填寫表格或法規說明方面需要任何協助，請洽詢 貴公司的關係經理。

步驟3的董事決議書，乃意在提供董事已考量經濟實質法並留意公司依經濟實質法的義務的佐證文件。

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相關服務費

本公司特此告知，保得利將收取一項期初搜集、上載及提交資料的服務費美元300元。對於公司是否屬於經濟實質法範圍內的任何認定，保得利概不負責。

若 貴公司需要一項正式評估，請告訴本公司，本公司將洽詢適當的開曼群島律師，屆時費用將另計。

報表

屬於經濟實質法範圍內的公司，依規定必須在其財務年度終了後12個月內提交一份經濟實質年度申報書，內容包括每一項相關業務的收益及費用的相關資料。

因此公司必須登錄財務報表，並在國際稅賦管理局正式索取時提供之。本公司特此告知，公司必須登錄妥善的會計記錄。 貴公司在編製報表上需要協助者，請洽詢 貴公司的關係經理。

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資料保護政策
最後，本公司藉此機會通知 貴公司，可在本公司網站 https://portcullis.co/privacy/ 取得保得利的個人資料保護政策聲明。

感謝您對此事的關注，我們期待對 貴公司有所協助。

敬祝 商祈！

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保得利集團
www.portcullis.co