Economic Substance Reporting for BVI Entities due on December 29, 2020

We are now in the first reporting year for Economic Substance return which is due 29 December 2020.

All BVI companies, and limited partnerships with legal personality, must now provide their registered agent with the prescribed particulars. The exact information required will depend on whether a relevant activity is carried out, and where the entity is tax resident, but we should emphasize that all entities now have reporting obligations.

Entities that are not in good standing. or are struck-off, or are in the process of solvent or insolvent liquidation, are still subject to the Economic Substance regime, and must urgently take steps to comply.

All entities that have not yet done so must now therefore urgently assess the impact of the new Economic Substance regime, in order to establish:

a)         where the entity is ‘tax resident’ for the purposes of the legislation;

b)         whether the entity is conducting one or more relevant activities (see below);

c)         the level of economic substance requirements that apply to the entity as a result (if any);

d)         how the entity can demonstrate that it is meeting the relevant requirements (where applicable); and

e)         what information must now be reported.

For entities incorporated or formed on or after 1 January 2019, declarations must be uploaded within six months after their incorporation or formation date.

For entities incorporated or formed prior to 1 January 2019, the deadline for reporting is six months after 30 June 2020.

Entities that have successfully applied to the ITA to change their year-end for the purposes of the Economic Substance regime are subject to different deadlines.

For more details, please send an email to mail@trinitybvi.com or call +1-284-495-5130