BRITISH VIRGIN ISLANDS: ANNUAL REQUIREMENTS

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ECONOMIC SUBSTANCE ACT (ESA)

We remind you of the Economic Substance classification deadlines for the period 2023-2024 imposed by the International Tax Authority of the BVI:

Penalties are imposed for failure to provide required information and for operating a legal entity in breach of the economic substance requirements, which may include fines, imprisonment and/or strike-off. Fines imposed by the authority, which may range from US$5,000.00 to US$75,000.

ANNUAL FINANCIAL RETURN (AFR)

As you are aware, with the implementation of the BVI Business Company (Financial Return) Order, 2023, all BVI companies will be required to submit certain financial information in the form of an annual return to their Registered Agent.

The annual return should be filed within nine (9) months after the end of the company’s financial/fiscal year to which the annual return relates. The earliest date an annual return becomes due (as opposed to when it must be filed) for a company is 1st January 2024. This will relate to a company that has a calendar year as its financial/fiscal year; the company has until 30th September 2024 to file its annual return that became due on 1st January 2024 (and will be due each 1st January after that and should be filed before each 30th September after that).

The RA must notify the BVI Registry of Corporate Affairs of any company that has failed to provide the annual return within 30 days of its last filing date. The company will be liable to pay a penalty of US$300 for the first month of non-compliance and US$200 for each month that the company remains in breach of the filing obligation, up to a maximum of US$5,000. The BVI Registrar of Corporate Affairs may also strike a defaulting company off the register.

If you require any additional information, please get in touch with us at Contact@viss.com.hk.