BVI ECONOMIC SUBSTANCE NEWS
OFFSHORE ALERT NEWS
Analytics, Market Research, BVI Company Research, Investigative,
Corporate Governance Partner.
The BVI enacted the Economic Substance (Companies and Limited Partnerships) Act, 2018 on 1st January 2019 which requires companies incorporated in the BVI which carry out a relevant activity and claiming tax residency in the BVI to demonstrate economic substance in the BVI. The BVI International Tax Authority will soon issue the Economic Substance Code which will provide guidance on the requirements of the new Legislation. Earlier in the year, 23 April 2019, a draft Code was released and the final code is well anticipated by stakeholders.
The relevant activities include banking business, fund management business, insurance business, intellectual property business, shipping business, finance and leasing (meaning the provision of credit facilities) business, headquarters business, holding company business and distribution and service centre business.
In order to demonstrate economic substance in relation to a relevant activity, a company must:
1. conduct core income generating activities ("CIGA") in the BVI;
2. be directed and managed in the BVI; and
3. taking into account the nature and scale of the relevant activity, have:
MJS & Associates can assist with the provision of substance services in the BVI including providing directors, employees, physical offices and related services. Click here to fill out our Economic Substance Questionnaire.
Copyright © MJS & Associates. All Rights Reserved