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Economic Substance

SCHEDULE 1:

Definition of Core Income Generating Activities in the Economic Substance (Companies and Limited Partnerships Act, 2018).

The CIGA examples for each relevant activity are detailed below, these are not exhaustive lists:

Banking business


“Core Income Generating Activities” includes, in respect of banking business:

(a) raising funds, managing risk including credit, currency and interest risk;

(b) taking hedging positions;

(c) providing loans, credit or other financial services to customers;

(d) managing regulatory capital;

(e) preparing regulatory reports and returns.




Distribution and service centre business


“Core Income Generating Activities” includes, in respect of distribution and service centre business:

(a) transporting and storing goods;

(b) managing stocks;

(c) taking orders;

(d) providing consulting or other administrative services.




Insurance business


“Core Income Generating Activities” includes, in respect of insurance business:

(a) predicting and calculating risk;

(b) insuring or re-insuring against risk;

(c) providing insurance business services to clients.




Fund management business


“Core Income Generating Activities” includes, in respect of fund management business:

(a) taking decisions on the holding and selling of investments;

(b) calculating risks and reserves;

(c) taking decisions on currency or interest fluctuations and hedging positions;

(d) preparing relevant regulatory or other reports for government authorities and investors.




Finance or leasing business


“Core Income Generating Activities” includes, in respect of finance or leasing business:

(a) agreeing funding terms;

(b) identifying and acquiring assets to be leased (in the case of leasing);

(c) setting the terms and duration of any financing or leasing;

(d) monitoring and revising any agreements;

(e) managing any risks;




Headquarters business


“Core Income Generating Activities” includes, in respect of headquarters business:

(a) taking relevant management decisions;

(b) incurring expenditures on behalf of affiliates;

(c) co-ordinating group activities.




Shipping business


“Core Income Generating Activities” includes, in respect of shipping business:

(a) managing the crew (including hiring, paying and overseeing crewmembers);

(b) hauling and maintaining ships;

(c) overseeing and tracking deliveries;

(d) determining what goods to order and when to deliver them;

(e) organising and overseeing voyages.




Intellectual property business


“Core Income Generating Activities” includes, in respect of intellectual property business:

(a) where the business concerns intellectual property assets such as patents, research and

development;

(b) where the business concerns non-trade intangible assets such as brand, trademark and customer data, marketing, branding and distribution.





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