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ECONOMIC SUBSTANCE REQUIREMENTS.
The British Virgin Islands ("BVI") has on the 1st of January 2019 passed a legislation through which it requires the establishment of the "economic substance" for BVI companies and partnerships that are "resident" in the BVI.
The Economic Substance (Companies and Limited Partnerships) Act 2018 ("the Act") applies to all BVI companies and limited partnerships which are registered under the BVI and which are tax resident in the BVI, as well as on foreign companies and limited partnerships
The entities which are excluded from the "economic substance test" are the legal entities which can demonstrate that they are tax resident in another jurisdiction.
Practice Area(s): Formation of Offshore Companies, Corporate and Commercial