BVI Economic Substance Act (ESA) Reporting
Scope:
The ESA potentially affects new and existing BVI companies (companies incorporated or re-registered under the BVI Business Companies Act, 2004 [the BCA]) and limited partnerships, as well as foreign companies and foreign limited partnerships that are registered in the BVI (together, “legal entities”).
The ESA does not apply to non-resident companies, non-resident limited partnerships or limited partnerships that do not have legal personality.
Exempt Entities:
- Limited partnerships that do not have legal personality
- Legal entities that are not carrying on one of the nine relevant activities
- Legal entities that can demonstrate that they are tax resident in another jurisdiction
Note: all legal entities (even those exempted from the substance requirements) must comply with the self-assessment reporting requirements under the Beneficial Ownership Secure Search System Act (“BOSS Act”).
Reporting Requirements:
Name, residential address, date of birth and nationality of their beneficial owners, corporate and legal entities must also identify their parent company (if any).
The corporate and legal entity will also be required to submit a self-assessment that includes the following information:
- 12-month financial period
- If the entity is resident elsewhere for tax purposes, it must state where and provide evidence to support this claim.
- Whether the entity engaged in any relevant activities during its financial period and if so, identify in which of the relevant activities it has been engaged
Submission of Self-Assessment Information:
- Each corporate and legal entity must provide its self-assessment information to its registered agent to facilitate upload to the BOSS system before the end of the entity’s filing deadline, i.e., six months after the last day of its financial period.
- This should be done by the entity’s director(s) or, in the case of a limited partnership, the general partner
- The registered agent will be responsible for ensuring the self-assessment is uploaded to the BOSS system
Reporting Timelines:
All legal entities must complete and submit their economic substance report within six (6) months of the end of their financial period (or 18 months from the start of their financial period).
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