About the Regulatory Blog and our contributors
The Regulatory Blog is an informal and up to date news and information service of key regulatory developments in our jurisdictions: the BVI, the Cayman Islands, Anguilla, Bermuda, Cyprus, and Luxembourg. We intend to include the latest financial services, anti-money laundering, sanctions and related developments within our remit.
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Update to BVI Economic Substance Rules: Important update for entities claiming non-residence via UAE corporate income taxes
On 2 April 2024, the BVI International Tax Authority published version four of its economic substance rules and explanatory notes, following the introduction of a federal corporate income tax system in the United Arab Emirates in respect of financial years beginning on or after 1 June 2023.
10 Apr 2024
BVI locally resident companies may now apply for exclusion from tax and economic substance reporting
In October 2023, the BVI International Tax Authority reminded the public about a new provision introduced under the International Tax Authority (Amendment) Act, 2023, introduced earlier in 2023, which permits local companies (as defined) to be excluded from certain economic substance tax reporting requirements. In order to qualify, the local company must submit an application for exclusion to the ITA.
29 Jan 2024
BVI economic substance reporting changes and deadlines
Most companies and limited partnerships registered in the BVI have an economic substance “financial period” of 30 June to 29 June. Reports to the International Tax Authority are due within six months of the financial period end, typically falling around the end of the calendar year.
28 Sep 2023
British Virgin Islands International Tax Authority publishes updated economic substance rules
On 24 February 2023, the BVI International Tax Authority published version three of its economic substance rules and explanatory notes (the Rules). The Rules primarily impact on BVI entities that engage in certain specified “relevant activities” that require them to demonstrate economic substance in the BVI unless they qualify for exemption due to their tax status.
15 Mar 2023
BVI ITA issues notice on economic substance
The BVI International Tax Authority recently issued a notice informing all financial institutions that from 7 November 2022 all requests relating to economic substance such as re-openings, financial period change requests, and responses to non-relevant activity should be sent to the email address: Compliancerequests@bviita.vg.
09 Nov 2022
European Commission publishes draft Directive to prevent the misuse of shell entities
On 22 December 2021, the European Commission (EC) published a draft Directive as part of its fight against the use of entities that do not perform any economic activity, so-called shell entities, and which are assumed to be used for improper tax purposes. In spite of representations to the contrary, the EC has specifically stated that this particular initiative is needed notwithstanding the plethora of other initiatives taken over the last few years.
07 Jan 2022
Cayman – ES tax resident overseas/tax resident in another jurisdiction form
The tax resident overseas/tax resident in another jurisdiction (TRO/TRIAJ) form (Form) for a successive reporting period is now available on the DITC Portal, here. The Form for the successive reporting period is based on the form submitted for the previous financial year.
26 Nov 2021
Enforcement action under the BVI Economic Substance regime - ITA determinations of non-compliance 09 June 2021
Our BVI economic substance team has put together an overview of the process under which we are beginning to see the BVI International Tax Authority (ITA) determining that a BVI company or limited partnership may have been non-compliant with the economic substance regime requirements during the first financial period (typically June 2019 to June 2020, with reporting submitted by December 2020).
09 Jun 2021
Cayman DITC Portal for FATCA, CRS and Economic Substance filings
Due to the delay for the Economic Substance (ES) component, the ES filing deadlines have been extended for this time only. The returns for relevant entities conducting IP business are now due by 31 January 2021 and the returns for relevant entities conducting all other relevant activities are due by 28 February 2021, for those due to file prior to these dates.
16 Nov 2020