New legislation is currently being considered by the BVI
Government which is expected to require in-scope entities that
carry on particular activities to have economic substance within
the BVI.
The law follows consultation with the EU Code of Conduct Group,
the OECD and BVI stakeholders, and is expected to be very similar
to recent laws introduced by other international financial centres
such as Jersey, Guernsey, Isle of Man, Bermuda and Cayman.
It is anticipated that the new law will come into force from 1
January 2019 and will establish new substance tests for BVI
tax-resident companies carrying on "relevant activities",
including distribution and service centre activities, holding
companies, fund management companies, financing and leasing
companies and companies carrying on headquarters business.
