Annual BVI Economic Substance Reporting
Annual Reporting Obligation for Companies Incorporated Prior to 1 January 2019
The third financial period for companies and limited partnerships (with legal personality) incorporated prior to 1 January 2019 concluded on 29 June 2022, and the period for filing economic substance submissions began on 30 June 2022. The only exceptions to this are for companies that have received approval from the BVI International Tax Authority (ITA) to change their financial period. We urge you to log in to the Trident Client Portal, using your account details, to complete your third annual economic substance declaration. Unless you have amended your financial period, it is important that the declaration is completed and submitted via the Trident portal by 15 November 2022. Due to anticipated high volumes, we cannot guarantee submission to the government portal if declarations are not received by this date. Fees for late submission may be charged by both Trident and the ITA, which will now be charging an administrative fee for late filings (detailed below). If you have already completed your submission for the financial period ending 29 June 2022, then you do not need to do anything further.
Annual Reporting Obligation for Companies Incorporated on or after 1 January 2019
For companies incorporated on or after 1 January 2019 that have not received approval from the BVI ITA to change their financial period, the financial period begins on the date of incorporation and ends on the anniversary of incorporation. It is important that the annual economic substance declaration is submitted on the anniversary of incorporation or within six (6) months of this date. If you have already completed your submission for the financial period ending 2022, then no further action is required.
Empowerment of the ITA – Administrative Penalty and Enforcement Actions
The ITA is tasked with ensuring that all BVI legal entities comply with their legal obligations, including meeting economic substance requirements. The International Tax Authority (Amendment) Act, 2022 (“ITA Act”) was adopted on 1 June 2022 and the supporting legislation, the International Tax