Economic Substance Compliance and related Services
Financial centers and companies related to the same must adhere to the regulations imposed by the European Union, which perceives and counters detrimental aspects of taxation. The regulatory guidelines associated with economic substance— a term associated with compliance, are, therefore, extremely important and must be followed by most international financial centers. Compliance with the economic substance means that the financial centers do not feature in the EU black list.
Every country has a pre-defined economic substance and guidelines associated with the same. Therefore, all the free zone firms, partnerships, LLPs, and offshore organizations need to abide by the same for avoiding the EU black list. The regulations hold true for banking businesses, insurance businesses, shipping conglomerates, and almost every company that functions in the given region.
Companies are better off when the ‘Substance over form’ approach is followed. This aspect makes sure that every activity is licensed and within the existing scope of the EU-centric regulations. Firms that are looking to be in the good books of the EU must abide by the economic substance standards of the given region while keeping the activities licensed, having adequate employees, perfectly demarcating expenditure, premise spread, and more.
Companies must declare profits, taxable income, and holdings in a transparent manner for economic substance compliance. Besides that, companies must understand that substance requirements also include relevant and high-risk activities and if often becomes difficult for the in-house experts to perfect documentation, reviews, and obligation towards deadlines.
At IMC, we make sure that companies, regardless of the nature, are better placed when it comes to adhering to the economic substance compliance. Every region comes with an Economic Substance Code and we make sure companies relevant to the demographic are in a good position to fulfill the standards. We also segregate businesses according to the risk factors and their chances of showing up in the EU Black List.
We also help determine the nature of the financial activities which can be further segregated as appropriate or adequate economic substance. Our main aim is to navigate the requirements related to EU substance whilst taking additional care of the affected jurisdictions. We conduct complete activity checks besides helping companies register the status with the EU regulatory representative.
- Reliable advisory module regarding substance compliance
- Taking care of all offshore, onshore, and free zone jurisdictions
- Assessing and responding to the impacts of non-compliance
- Conducting preliminary assessments
- Responding to legislative changes
- Closely working with the in-house executives to prepare transparent reports
- Adherence with the local regulations
- Helping companies move out of the EU black list
- Curating possible strategies
- Round the clock support
- Analyzing implications and the relevant activities
- Keeping a track of workforce, expenses, and premises
At IMC, we review the organizational structure in the most cost-effective and transparent manner. We work closely with the local jurisdiction and allow them to create strong substance frameworks. IMC helps firms evolve with the changing tide of Economic Substance and the standards associated with the same.