• Home
  • News
    • People moves
    • Africa
    • Asia
    • Australia
    • Canada
    • Caribbean
    • Domicile
    • Europe
    • Latin America
    • North America
    • Middle East
    • US
    • US
    • UK
  • Products
    • Funds
    • Pensions
    • Platforms
    • Insurance
    • Investments
    • Private Banking
    • Citizenship
    • Taxation
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Directory
  • Video
  • Advertise with us
  • Directory
  • Events
  • European Fund Selector
  • Newsletters
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
  • Advertise with us
  • Directory
  • Events
    • Upcoming events
      View all events
  • European Fund Selector
International Investment
International Investment

Sponsored by

Sharing Alpha
  • Home
  • News
  • Products
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Video
  • Regulation

BVI's new economic substance rules prompt questions by financial industry

BVI's new economic substance rules prompt questions by financial industry
  • Pedro Gonçalves
  • @PeterHSG
  • 21 January 2019
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  

The new economic substance law in the British Virgin Islands came into effect on January 1st, but the financial industry is still uncertain about its requirements and has several questions about the impact the new rules will have.

As mandated by the EU, the law requires offshore financial services companies registered in the BVI to set up physical, appropriately-staffed office spaces in the territory, if they are to continue doing business with/through the BVI.

Related articles

  • BVI anticipates financial sector boom under new rules
  • Offshore centres brace for the impact of substance legislation
  • Measures to avoid EU blacklist could hurt BVI’s finance sector
  • BVI sets out measures to counter EU tax 'greylist' concerns

"We are looking to get that [answers] to them through guidance notes from the International Tax Authority, which is the government entity that is responsible for the implementation of the new law. And then we ourselves will issue further briefings to the industry to give them that level of clarity that they would need on their many questions," Interim Executive Director of BVI Finance, Lorna Smith, said.

"We are looking to get that [answers] to them through guidance notes from the International Tax Authority, which is the government entity that is responsible for the implementation of the new law. And then we ourselves will issue further briefings to the industry to give them that level of clarity that they would need on their many questions"

Premier Orlando Smith had already stated in a press release that the BVI's International Tax Authority plans to issue a "guidance note" to address the questions.

The British Virgins Islands is still waiting to know whether the European Union accepts the territory's Economic Substance (Companies and Limited Partnerships) Act that was recently passed in the House of Assembly.

"[We are] waiting until I suppose mid-February to know what the decision of the EU will be. We have no reason to be pessimistic but we'll have to wait and see," Smith added.

In late 2017 and early 2018, the EU placed the BVI, the Cayman Islands, Bermuda and the Crown dependencies on an anti-tax-avoidance "grey list" due to concerns relating to "economic substance."

It threatened to blacklist the BVI as a noncompliant tax jurisdiction if the territory does not satisfactorily address their (the EU's) concerns about a term referred to as ‘economic substance'.

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Regulation
  • British Virgin Islands
  • EU
  • BVI
  • International Tax Authority
  • BVI Finance
  • Cayman Islands
  • Bermuda

More on Regulation

Industry warns worse is to come as UK nears double-dip recession

  • Regulation
  • 15 January 2021
FCA warns pandemic puts 4,000 financial firms at risk of failing

  • Regulation
  • 07 January 2021
FCA slaps Charles Schwab UK with £9m fine over compliance failures

  • Regulation
  • 21 December 2020
FATF removes Bahamas from 'increased monitoring' list

  • Regulation
  • 21 December 2020
FCA orders Blue Gate Capital to pay Connaught investors £200k

  • Regulation
  • 18 December 2020
Back to Top

Most read

FCA issues warning on cyrptocurrencies as Bitcoin volatility continues
FCA issues warning on cyrptocurrencies as Bitcoin volatility continues
SharingAlpha's 2020 top rated funds by category revealed
SharingAlpha's 2020 top rated funds by category revealed
DeVere launches equity fund with Columbia Threadneedle Investments
DeVere launches equity fund with Columbia Threadneedle Investments
Guardian WM is reborn as Skybound WM
Guardian WM is reborn as Skybound WM
HNWIs in SE Asia cite lack of financial knowledge as greatest concern: report
HNWIs in SE Asia cite lack of financial knowledge as greatest concern: report
  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading