Economic Substance Classification Portal
As you may be aware, the BVI Economic Substance Act (ESA) came into effect on January 1, 2019. Under its default reporting rules, entities formed after January 1, 2019 will have their first financial period for Economic Substance (ES) purposes one year after their respective date of formation, unless notice has been given to the BVI International Tax Authority (ITA), within the prescribed period pursuant to the ESA, to change their first financial period.
Timing and latest update
As required under the ESA, entities are required to file their first ES report within six (6) months after the end of their respective financial period. In view of this, entities formed on January 1, 2019 will need to file their first ES report by June 30, 2020, entities formed on January 2, 2019 will need to file their first ES report by July 1, 2020 and so forth.
Entities formed before January 1, 2019 will be required to file their first ES report within a period of six (6) months after June 29, 2020.
Recently the ITA issued a draft of the Data Model under which such ESA reports have to be filed on the BVI Beneficial Ownership Secure System (BOSS). BOSS is currently being updated to allow for such ESA report flings and this update is expected to be completed in time to allow for the first reports to be filed by June 30th, 2020. We will send you an updated newsletter once BOSS is available for ES filings.
AMS Financial Group ES Portal
With this in mind, AMS has been working hard behind the scenes to develop a system that will allow our valued clients to provide us with the information necessary for the relevant filings.
We are delighted to inform you that in partnership with PricewaterhouseCoopers and Touchstone, AMS has developed a state of the art Economic Substance Portal. This portal will allow our clients to submit the required information on their managed entities, thereby enabling us to make the relevant classifications and filings required under the Economic Substance Act.
Our COO, Rutger Van Hilst, had this to say on the development :
“We have been working very hard on putting this in place and are delighted with the results. It was always our intention to provide our clients with a best in class solution for this very complex change in legislation and with the assistance of PWC, who are a leader in their field, and Touchstone , who have provided us with the NAVOne wealth management system, we believe that we have provided the market leading tool for Economic Substance classification.”
In the coming weeks, AMS will be providing further information on the portal itself, including instructions and full guidance relating to its use.
Should you have any queries in the meantime, please do not hesitate to get in touch with your AMS contact.