IBSA Event: The Importance of Substance

Companies will need to proof substance in a jurisdiction on a higher level than just an address, to be compliant with international taxation rules. 

The International Business Structuring Association IBSA is organising an event on 14 May 2019 at 6pm in Limassol, titled


The event will be held at the Neocleous House, 195 Makarios III Avenue, 1-5th floor, 3030 Limassol, Cyprus.

IBSA members as well as non members are cordially invited to attend; please register here.

The step-by-step implementation of the OECD’s BEPS (Base Eroding and Profit Shifting) recommendations in national laws is resulting in unignorable consequences for the international business world.

Resilient company setups do require not only to comply with the letter of law but the intention behind it. Companies need to be properly domiciled where they intend to be. If scrutinised, companies must be able to proof that their profit has indeed been created where they are registered.

Furthermore, banks will be reluctant to open bank accounts for companies that cannot proof proper and substance in the country of registration. The operative substance of a company must be adequate to the business line and business volume of the company.

Stefan Nolte, Managing Director of Shanda Consult, will speak about the importance of operative substance with a special focus on the perspective of tax authorities of the beneficial owners’ countries of residence.




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