The British Virgin Islands (BVI) has passed legislation addressing the European Union’s concerns over “economic substance”, the Premier and Minister of Finance Dr D Orlando Smith, OBW, announced.

The legislation came into effect 1 January 2019, but existing legal entities will have until 30 June 2019 to comply with the substance requirements contained within the Act. They then have up to a year to make a compliance report to the BVI International Tax Authority. 

The Act imposes economic substance requirements on all BVI companies and limited partnerships with legal personality which are carrying on “relevan...