On 9 October 2019, the International Tax Authority (ITA) of the British Virgin Islands published the Rules on Economic Substance that provide guidance and explanatory notes for substance requirements on BVI companies and limited partnerships.
The Rules will become effective once BVI’s Beneficial Ownership Secure System Act comes into effect.
For the reminder, Economic Substance regime applies to the following business activities:
- Banking
- Insurance
- Shipping
- Fund Management
- Financing and Leasing
- Headquarters
- Distribution and Service Centres
- Holding Company
- Intellectual Property
