By using our website you consent to all cookies in accordance with our Privacy Policy.

reporting requirement under BVI Economic Substance Act

Effective from Jan 2019, BVI Economic Substance Act (ESA) has set out reporting requirement for entities which fall under the scope of the legislation. The ESA reporting regime was built on Beneficial Ownership Secure Search System Act 2017 (the BOSS Act). Section 16 of the Act imposed further reporting obligations by way of amending the BOSS Act. In June 2019, the BVI changed the effective date of this section to 1 Oct 2019 by releasing a Notice (SI No.41 of 2019) under BVI Economic Substance.

So, what information that must be provided by an BVI entity?

The type of information you must report to your registered agent depends on your business activities and tax residency status. Below we boil down to three specific cases with corresponding reporting information.

– If your BVI entity carries on relevant activities and is not a non-resident company or non-resident limited partnership, then for each relevant activities during a financial period after 31 Dec 2018, the declared information must include:

  • Total income by the relevant activity in BVI;
  • Total operating expenses by the relevant activity in BVI;
  • Number of qualified employees engaging in relevant activity in BVI;
  • Address of premises in BVI in relation to the relevant activity;
  • Details of equipment in BVI for uses in connection to the relevant activity;
  • Details of individuals responsible for direction and management of the relevant activity, and whether they are resident in BVI.

If the core income-generating activities are outsourced to another entity, information regarding the name of the outsourcing entity and details of resources deployed is also required.

For IP holding business, ESA requires entities to declare whether they are high risk IP legal entity and whether they wish to contest the rebuttable presumption in the Act, if so, the facts and matters relied upon.

– If your BVI entity conducts relevant activities and is a non-resident company or non-resident limited partnership, you must declare the jurisdiction in which your BVI entity is tax resident together with supported evidence. Please note that these evidence is not described in the Act.

– Finally, if your BVI entity does not carry on any relevant activity specified in the Act, you just have to notify your registered agent without need to provide supporting documents.

No further details on the filing process and submission period are given by the Act.

Our relationship manager will contact you as soon as we receive new guidance regarding these reporting requirements.

Should you have any question of reporting obligation under BVI economic substance, please contact your direct account manager or drop us a message through service@bbcincorp.com.

>> Read more: 2020 Update: A Guide to BVI Economic Substance Requirements

Recent Posts

doing-business-in-hong-kong-the-ultimate-guide-for-foreigners
26 Nov 2020

Doing Business In Hong Kong: The Ultimate Guide For Foreigners

Here is a guide to doing business in Hong Kong for foreigners! The blog covers all you need to know about the benefits of forming a business in Hong Kong and how to start it.

Read more
offshore-company-for-international-trading
26 Nov 2020

Offshore Company for International Trading: Things to consider

Let’s take a glance at things you should consider in terms of benefits and hindrances before turning your typical trading company into an offshore entity.

Read more
how-to-choose-hong-kong-financial-year-end
20 Nov 2020

How to choose Hong Kong financial year end

Wonder how to determine the financial year end in Hong Kong? In this article, we will shed light on everything about Hong Kong financial year. Learn more with us!

Read more
a-guide-to-exempted-company-in-cayman-islands
25 Nov 2020

A guide to Exempted Company in Cayman Islands

A glance at Cayman Islands Exempted Company and all of its key features as well as the incorporation process. Stay tuned to find out!

Read more
guide-to-controlled-foreign-corporation-rules
18 Nov 2020

An Overview of Controlled Foreign Corporation Rules (CFC rules)

Many countries have implemented Controlled Foreign Corporations Rules to avoid profit shiftings among jurisdictions. Learn more about CFC rules with BBCIncorp.

Read more
banking-tool
18 Nov 2020

Choose the Best Banks for Your Offshore Companies

Use BBCIncorp’s banking tool to see what banks suit your offshore business most. You can also check the approval rate to get a bank account. Use it for free!

Read more
offshore-holding-company-how-to-use
25 Nov 2020

Offshore holding company: How to use & Where to consider

Offshore holding company manages equity participations in subsidiaries. In this article, we tell you popular uses and best offshore jurisdictions for a holding structure.

Read more
why-doing-business-in-vietnam
25 Nov 2020

Why Doing Business In Vietnam: Benefits vs Challenges

Still uncertain about doing business in Vietnam? Here we walk you through both the benefits and challenges of Vietnam business to reach your final decision!

Read more
belize-es-quiz-tool
11 Nov 2020

Belize Economic Substance Assessing Tool

Now you can self-check whether your business is subject to Belize economic substance requirements by joining our Belize Economic Substance Self-Assessment Tool. Check it out!

Read more
vietnam-virtual-office-vs-co-working-space
25 Nov 2020

Vietnam Virtual Office vs Co-Working Space: Which to choose?

Vietnam virtual office is an emerging trend for business people investing in Vietnam in recent years. Learn more on how it differs from a traditional physical office!

Read more
joint-stock-company-in-vietnam
25 Nov 2020

A Go-To Guide To Joint Stock Company In Vietnam

A joint stock company in Vietnam is the only business form allowed to issue shares. Find out key features of this type and how it is different from an LLC in Vietnam!

Read more
how-to-start-a-business-in-vietnam-as-a-foreigner
25 Nov 2020

2020 Update: How to Start A Business in Vietnam as A Foreigner

Below is a useful guide to how to start a business in Vietnam as a foreigner. Key highlights include business restrictions, needed documents, and associated costs.

Read more