The British Virgin Islands (BVI) adopts economic substance requirements


The British Virgin Islands (BVI) adopts economic substance requirements applicable from 1 ژانویه 2019 (with a six-month transitional period for existing legal entities) if it conducts any of the following “relevant activities”:

  • banking business
  • insurance business
  • fund management business
  • finance and leasing business
  • headquarters business
  • shipping business
  • holding business
  • intellectual property business
  • distribution and service centre business.

If the economic substance fail, the BVI non-resident company needs to show that it is resident (and taxed) in another jurisdiction. Companies registered in the BVI are widely used in Hong Kong.