We refer to our alert from June 2019 for guidance on the requirements of the Economic Substance (Companies and Limited Partnerships) Act, 2018 (the ES Act) and the definitions of Legal Entity, Relevant Activity and Financial Period.
On 10 October 2019 the British Virgin Islands International Tax Authority (the ITA) published the Rules on Economic Substance in the British Virgin Islands (the Rules). The Rules provided much welcomed clarification on the economic substance requirements, and are very similar to the draft guidelines published in August 2019.
We have prepared a compendium containing the updated ES Act, the Beneficial Ownership Secure Search System Act, and the Rules. It is available to you at the following link:
Commencing in 2020, all companies and limited partnerships with legal personality will need to make a filing to evidence satisfaction with economic substance requirements or to state that the entity is out of scope. The purpose of this alert is to provide preliminary details about the filings which will need to be made in 2020.
As well, it must be emphasised that all British Virgin Islands business companies and limited partnerships with legal personality which are Legal Entities carrying on a Relevant Activity are required to have established economic substance in the British Virgin Islands as of 30 June 2019.
To continue reading full articles in PDF format:
British Virgin Islands – Economic Substance – Update