Client Update- BVI Economic Substance Act
-time to file the first report is running out-
The BVI Economic Substance Act (ESA), which was introduced in last year, requires all BVI companies that have been incorporated before January 1, 2019 to file their first ESA report before December 29, 2020.
This ESA report is not a tax return, but rather an informational return which requires each BVI company and its directors to annually report certain information about its activities to the BVI government. The Internal Tax Agency in BVI is tasked with enforcement of ESA rules.
Note that a regime of penalties and fines applies to BVI entities and its directors, who either do not comply with ESA compliance and reporting requirements or who have given no consideration to the impact of ESA on the entity on which board they sit.
In case you have not classified a BVI entity of which you act as director or have not filed the first ESA report for such entity please contact us at your earliest convenience at email@example.com to ensure that first ESA reports can be filed before the required deadline of December 29, 2020.