In this regard, it is necessary to check with the registered agent whether the data has been uploaded to the system. If the data has not been uploaded, this obligation must be fulfilled urgently. To comply with this requirement, BVI company owners will need 2019 financial statements prepared under IFRS.

As a reminder, the economic substance requirements were introduced in the BVI in December 2018. These requirements apply to companies engaged in one of the specified activities (asset management, insurance, finance, banking, holding business, distribution and service business, shipping business, headquarters business, intellectual property business). In this context, correct interpretation of the relevant business activity is extremely important. For example, a company’s provision of loans at interest may be regarded as financial activity falling within the scope of the substance requirements.

Under these requirements, a BVI company must be managed from within the BVI (that is, the company’s board meetings and all documents must be kept in the BVI), it must have an office and an “adequate” number of qualified employees located in the BVI, and its expenses must be commensurate with the scale of its business.

To confirm compliance, the company provides all supporting information to its registered agent, who in turn uploads it to the BOSSs system. The tax authorities review the information provided and, if necessary, make additional requests.

Make sure you comply with all requirements before year-end and avoid penalties!

We would be happy to provide more details and assist with:

• Preparing documentation, including IFRS financial statements

• Taking over coordination of the submission of all required information