Contact

Rachael McDonald

Rachael McDonald

BVI
Partner

Chinyin Johnston

Chinyin Johnston

London
Partner

Danielle Roman

Danielle Roman

Hong Kong
Partner

Simon Lawrenson

Simon Lawrenson

Hong Kong
Partner

Sara Galletly

Sara Galletly

Cayman Islands
Counsel

Guide

BVI economic substance legislation

[Dynamic date]

12 November 2019

The Economic Substance (Companies and Limited Partnerships) Act, 2018 (the Act) came into force on 1 January 2019 and imposes economic substance requirements on companies and limited partnerships in the British Virgin Islands (BVI). The Act was brought into force to address the concerns of the EU Code of Conduct Group (Business Taxation) regarding the existence of a favourable tax regime facilitating offshore structures generating profits without real economic activity. The Act also reflects the BVI's commitment as a member of the OECD's Inclusive Framework on Base Erosion and Profit Shifting (BEPS) and, in particular BEPS Action 5.