In March 2018, the BVI was included on the EU's 'grey
list' of cooperative tax jurisdictions, signifying that, whilst
the BVI was proactively engaging with the EU, the EU required
further progress to address its concerns. Since that date, the BVI
has proven its commitment to good tax governance by passing the
Economic Substance (Companies and Limited Partnerships) Act, 2018,
which requires certain entities to demonstrate economic substance
in the BVI. To complement this primary legislation, the BVI
International Tax Authority has issued rules of interpretation, an
updated version of which was published on 10 February 2020 and now
includes a number of worked examples to better assist the
classification of entities.
