In response to the requirements of the EU Code of Conduct Group,
the British Virgin Islands has enacted new legislation setting out
an economic substance test for tax-resident entities.
The Economic Substance (Companies and Limited Partnerships) Act,
2018 (the Act) came into force on 1 January 2019 and applies to all
companies and limited partnerships (excluding limited partnerships
without legal personality) registered in the British Virgin Islands
(or foreign companies and limited partnerships doing business in
the territory), other than British Virgin Islands registered
companies or limited partnerships that are "non-resident"
in the British Virgin Islands. The Act applies to existing entities
and new entities incorporated or formed from 1 January 2019.
