From January 1st 2019 under the newly released BVI Economic Substance Act, all entities registered or incorporated in the BVI are required to submit Economic Substance (ES) Annual Returns, as one of the new compliance obligations.
The BVI International Tax Authority (ITA) has announced that the BOSS Portal – mentioned in the BOSS Act 2017 (as amended) – is now live.
Is this important to your entity?
The Beneficial Ownership Secure Search (BOSS) system integrating information from economic substance reporting, will be closely monitored by ITA. Every legal entity must report the total turnover, the amount of expenditure and other details related to each Relevant Activity conducted in the preceding financial period.
It should be noted that the Rules specifically state that an entity must still remain compliant with the economic substance requirements during any such time that the entity is in liquidation.
What are your next step?
Since the BOSS portal is launching, we will reach out to you to assist with the reporting process to meet the deadline of 31 July 2020. For entities incorporated or registered before 1 January 2019 or after 1 February, your ES reporting deadline will be after 31 July 2020.
Pursuant to ES Act and BOSS Act, failing to provide the information timely or accurately will expose your entity to the risk of a financial fine up to USD75,000 and/or a maximum prison term of 5 years.
At this point if you have not classified your entity to clarify whether any part of your operation is within the scope of Relevant Activity then we urge you to take action quickly in order to meet the stipulated schedule.
Should you have any questions, please do not hesitate to get in touch with our experts.