International Tax Co-operation (Economic Substance) (Prescribed Dates) Regulations (2024 Revision)

Summary

This is a short subordinate regulation under the International Tax Co-operation (Economic Substance) Act that fixes the specific calendar dates by which the economic substance (ES) test obligations under the principal Act take effect. It does not create new substantive ES requirements itself, but pins down the trigger dates the principal Act refers to for different categories of relevant entities. This 2024 Revision consolidates the original 2018 Regulations with a 2021 amendment adding partnerships, exempted limited partnerships and foreign limited partnerships into scope.

• Relevant entities existing before commencement: The ES test had to be satisfied from 1 July 2019.
• Relevant entities formed after commencement: Must satisfy the ES test from the date they begin the relevant activity.
• Section 7(3) date for these entities: Fixed at 1 January 2019, for reporting/notification timing purposes.
• Partnerships, exempted limited partnerships and foreign limited partnerships existing before the 2021 amending regulations: The ES test applies from 1 January 2022.
• Such partnership-type entities formed afterward: Must satisfy the ES test from the date they commence the relevant activity.
• Section 7(3) date for partnership-type entities: Fixed at 1 July 2021.

Because these dates have already passed, the regulation now functions mainly as a historical/reference instrument confirming when ES obligations began for existing and legacy entities, rather than imposing new forward-looking deadlines.

Key obligations

• Relevant entities in existence before commencement of the Economic Substance Law must have satisfied the economic substance test from 1 July 2019.
• Relevant entities not in existence before commencement of the Law must satisfy the economic substance test from the date they commence the relevant activity.
• For section 7(3) purposes under the principal Act, the prescribed date for relevant entities generally is 1 January 2019.
• Partnerships, exempted limited partnerships and foreign limited partnerships in existence before the 2021 amending Regulations commenced must have satisfied the economic substance test from 1 January 2022.
• Partnerships, exempted limited partnerships and foreign limited partnerships formed after the 2021 amending Regulations commenced must satisfy the economic substance test from the date they commence the relevant activity.
• For section 7(3) purposes, the prescribed date for partnerships, exempted limited partnerships and foreign limited partnerships is 1 July 2021.

Applies to

relevant entities, partnerships, exempted limited partnerships, foreign limited partnerships

Deadlines

• 1st July 2019: Date from which a relevant entity in existence prior to commencement of the Law must satisfy the economic substance test.
• 1st January 2019: Prescribed date for purposes of section 7(3) of the principal Act for relevant entities generally.
• 1st January 2022: Date from which a partnership, exempted limited partnership or foreign limited partnership in existence prior to the 2021 amending Regulations must satisfy the economic substance test.
• 1st July 2021: Prescribed date for purposes of section 7(3) of the principal Act for partnerships, exempted limited partnerships and foreign limited partnerships.