BVI Economic Substance Classification – Take immediate action to avoid penalty!

BVI Update 

Further to Grant Thornton Vietnam previous notification on the British Virgin Islands Economic Substance Act, they are pleased to further update you and highlight  the BVI Economic Substance Classification Questionnaire for your prompt action.

It is now crucial to determine whether or not your BVI Company is fully complying with the substance legislation in a wide range of aspects from your company’s tax residence, business activities, and others respects of the company.

Understanding the strict compulsory level of the legislation, Grant Thornton Vietnam strongly suggest a pragmatic solution, The Classification Questionnaire, to help you classify your BVI Company and whether or not it is under the scope of the economic substance legislation.

How to receive a Classification Questionnaire for your company?
For the convenience of clients, the offer a solution that is direct and simple with a few simple steps  as follows:

  • Step 1: Contact Grant Thornton Vietnam to receive a copy of Classification Questionnaire and service charges accordingly
  • Step 2: Complete the Questionnaire with their guidance, if needed
  • Step 3: Their extensive knowledge experts will review your response and determine your classification to produce a detail report
  • Step 4: A report will be delivered to you which confirms on your company’s status and proposed next steps to ensure you comply with the substance legislation

What are the key dates?

Existing companies will need to comply with economic substance requirements from 30 June 2019 and meet the reporting obligation within one year of 30 June 2019.

New companies that are incorporated on or after 1 January 2019 must comply with the economic substance requirements immediately.

Are there penalties for non-compliance?

A BVI company is imperatively complying with the Act, any failure could incur a maximum penalty of $400,000 and imprisonment for a term up to 5 years. Therefore, Grant Thornton Vietnam strongly suggest that your BVI Company classifies yourself as soon as possible to avoid severe potential penalties.

Please contact Grant Thornton Vietnam for more information, or, send your enquiry to anh.trinh@vn.gt.com

Grant Thornton Vietnam look forward to hearing from you soon.