Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 25 FEBRUARY 2019

BVI Companies Make A Move Towards Tax Transparency

AGPLAW | A.G. Paphitis & Co. LLC
AGPLAW | A.G. Paphitis & Co. LLC
Contributor
AGPLAW | A.G. Paphitis & Co. LLC

AGPLAW | A.G. Paphitis & Co. LLC

Established in 2006, AGPLAW is a full-service, award-winning and committed to excellence law firm...

View firm profile
Explore more from AGPLAW | A.G. Paphitis & Co. LLC

BVI passed the Economic Substance Act, due to the lack of tax transparency in the territory, in order to avoid BVI to be included in the EU list of the non-cooperative jurisdictions for tax purposes.

CyprusTax
Maria Hinni
Maria Hinni
Author LinkedIn connections

BVI passed the Economic Substance Act, due to the lack of tax transparency in the territory, in order to avoid BVI to be included in the EU list of the non-cooperative jurisdictions for tax purposes.

Similar legislation were passed in various jurisdictions which are listed as tax heaven jurisdictions.

Since 1st of January 2019, the new Act is requiring BVI legal entities to demonstrate adequate economic substance tax-wise. The Law introduces economic substance requirements for all companies and limited partnerships which are complied with the requirements as described below.

According to this Act, a legal entity which carries on a "relevant activity" during any financial period must comply with their economic substance requirements.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Cyprus Corporate Tax Is Now 15%: Who Pays 8 Points Less, And Why Non-Doms Pay More

Cyprus has raised its corporate income tax rate from 12.5% to 15%, but the total tax burden on distributed profits has actually fallen by more than eight percentage points for Cyprus-domiciled shareholders due to a dramatic cut in the Special Contribution for Defence on dividends. However, non-domiciled residents and foreign shareholders now face higher effective rates, fundamentally reshaping the island's tax competitiveness for different investor categories.
CyprusTax
CYAUSE Audit Services Ltd
CYAUSE Audit Services Ltd
Article

You Can Now Be Cyprus Tax Resident In 60 Days Even If Another Country Still Claims You

Cyprus removed a key barrier to its 60-day tax residency rule in January 2026, allowing applicants to qualify even if another country still claims them as tax resident. The change shifts the resolution of competing residency claims from domestic statute to double tax treaty tie-breaker provisions, fundamentally altering how internationally mobile business owners and executives can establish Cyprus tax residency.
CyprusTax
CYAUSE Audit Services Ltd
CYAUSE Audit Services Ltd
Article

MiCA’s Transition Ends On 1 July 2026. Is Your Crypto Business Authorised To Continue?

The EU's Markets in Crypto Assets Regulation (MiCA) transitional period expires on 1 July 2026, marking a critical deadline for crypto-asset service providers operating in Europe. Without proper MiCA authorisation by this date, businesses must cease operations and implement orderly wind-down procedures, as pending applications do not grant permission to continue providing services. This comprehensive analysis examines the regulatory requirements, compliance obligations, and strategic considerations for cryp
CyprusFinance and Banking
AGPLAW | A.G. Paphitis & Co. LLC
AGPLAW | A.G. Paphitis & Co. LLC
Article

Cyprus Citizenship For Highly Skilled Employees

Cyprus has introduced an accelerated citizenship pathway for highly skilled foreign employees working for qualifying companies in the Republic. This framework, sometimes called the "Golden Knowledge" route, allows eligible professionals to obtain citizenship after four or five years of qualifying residence, depending on their Greek language proficiency. The regime represents a significant development for international professionals who have established their careers and lives in Cyprus.
CyprusImmigration
AGPLAW | A.G. Paphitis & Co. LLC
AGPLAW | A.G. Paphitis & Co. LLC
Article

Can Cyprus Become A True Fintech Banking Hub?

Cyprus is evolving from a jurisdiction that simply attracts fintech licenses to one building genuine European fintech infrastructure. With new regulatory frameworks including PSD3, DORA, and MiCA converging, the country faces a critical question: can it develop the banking relationships, payment systems access, and institutional depth required to transform licensed entities into a truly interconnected financial ecosystem?
CyprusFinance and Banking
AGPLAW | A.G. Paphitis & Co. LLC
AGPLAW | A.G. Paphitis & Co. LLC
Article

Crypto Fraud, Cold Calls And “Recovery” Scams In Cyprus. Why Victims Must Act Fast

Cryptocurrency fraud victims in Cyprus are increasingly targeted by sophisticated "recovery" scams involving cold calls, remote access requests, and false promises to retrieve lost digital assets. Recent court cases demonstrate that while recovery is not guaranteed, victims who preserve evidence and act quickly may have realistic legal options through Cyprus courts, including freezing orders, disclosure relief, and asset preservation measures.
CyprusCriminal Law
AGPLAW | A.G. Paphitis & Co. LLC
AGPLAW | A.G. Paphitis & Co. LLC
Article

What The Jautiva Ruling Means For Shareholder Privacy

The Court of Justice's Jautiva ruling has clarified that EU company law does not require unrestricted online access to shareholder personal information, even when corporate transparency and anti-money laundering objectives are invoked. Cyprus businesses must now reconsider how they balance statutory filing obligations with data protection principles, particularly when shareholder records can be downloaded in bulk without safeguards. This analysis examines what the judgment means for corporate disclosure pra
CyprusPrivacy
AGPLAW | A.G. Paphitis & Co. LLC
AGPLAW | A.G. Paphitis & Co. LLC