Vistra has announced a new economic substance service in the British Virgin Islands to help companies determine the classification of their BVI company as it applies to the substance rules.
Simon Filmer, global lead, company formation, Vistra, said in a statement: "It is now mandatory for all BVI entities to comply with substance requirements and demonstrate good corporate governance. The first step to achieving these goals is to determine if one's entity is in-scope or out of scope, and Vistra is ready to help make this classification process as simple, direct and effective as possible for our clients."
The Questionnaire is user-friendly, comprising a short list of questions for clients to fill in. Based on the questionnaire submitted, Vistra's subject matter experts will conduct a detailed analysis and produce a report outlining reporting obligations and concrete suggestions on next steps to ensure substance compliance.
The first step to achieving these goals is to determine if one's entity is in-scope or out of scope, and Vistra is ready to help make this classification process as simple, direct and effective as possible for our clients"
Late last year, the BVI introduced the Economic Substance (Companies and Limited Partnership) Act 2018 in response to the European Union's Economic Substance requirements, which address alleged concerns of entities generating too much profit and too little substance in low or zero-rate tax jurisdictions. As a result, all BVI entities need to understand their obligations, be compliant and where applicable, demonstrate and report economic substance.
Vistra said it is looking to launch substance classification solutions for a number of other jurisdictions, including the Cayman Islands.