Economic Substance – Update

We refer to our alert from June 2019 for guidance on the requirements of the Economic Substance (Companies and Limited Partnerships) Act, 2018 (the ES Act) and the definitions of Legal Entity, Relevant Activity and Financial Period.

On 10 October 2019 the British Virgin Islands International Tax Authority (the ITA) published the Rules on Economic Substance in the British Virgin Islands (the Rules). The Rules provided much welcomed clarification on the economic substance requirements, and are very similar to the draft guidelines published in August 2019.

We have prepared a compendium containing the updated ES Act, the Beneficial Ownership Secure Search System Act, and the Rules. It is available to you at the following link: