Financial Period Reporting for Economic Substance

Portcullis has received a number of queries with respect to Financial Periods and reporting obligations under the Economic Substance (Companies and Limited Partnerships) Act. This circular clarifies how a Financial Period is determined and when Portcullis is required to report the prescribed information for all entities.

All active BVI entities are required to report to the relevant BVI authority whether they conduct a relevant activity as set out in the attached schedule.

Where an entity does not conduct a relevant activity, it is required to confirm its financial period and to report that it does not conduct a relevant activity within six months from the end of the entity’s financial period.

Where an entity conducts a relevant activity, it is required to confirm its financial period and to report prescribed information within six months from the end of the entity’s financial period.

An entity’s financial period will be determined as follows:

1. Entities incorporated prior to 2019
   The first financial period shall be set as 30 June 2019 to 29 June 2020 unless a notification for earlier commencement has been submitted to the International Tax Authority (“ITA”).
   Reporting for these entities shall be within six months from 30 June 2020.
2. Entities incorporated from 1 January 2019
   The first annual financial period shall commence on the date of incorporation. An entity may apply for an earlier termination date by making the necessary application to the ITA.
   Reporting for these entities shall be within 6 months from the end date of the financial period.
3. Alteration of an entity’s financial period
   An entity can at any time apply to the ITA to alter its financial period, for example, to bring its financial period into line with its tax accounting period. The alteration however may not extend the length of the financial period beyond 12 months. Portcullis can assist you to file a notice of alteration of the financial period.

Please do not hesitate to contact us should you require clarification.

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PORTCULLIS GROUP
www.portcullis.co

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經濟實質的財務年度申報

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關於依經濟實質（公司與有限合夥企業）法的財務年度及申報義務事項，保得利接獲許多詢問。本通告函旨在說明財務年度如何決定，以及保得利必須在何時申報所有實體的法定資料。

所有開業的英屬維京群島實體，必須向英屬維京群島主管機關申報其是否經營附表所列的相關業務。

實體若未經營相關業務，則須確認其財務年度，並在其財務年度終了後六個月內申報其未經營相關業務一事。

實體若經營相關業務，則須確認其財務年度，並在其財務年度終了後六個月內申報其法定資料。

實體的財務年度決定如下：

1. 2019年之前設立的實體
   第一個財務年度應自2019年6月30日起至2020年6月29日止，但向國際稅務管理局（「稅管局」）通報提前開始者除外。
   此類實體應在2020年6月30日起六個月內提出申報。
2. 2019年1月1日起設立的實體
   第一個年度的財務年度應自實體設立日開始。實體得向稅管局提出必要的申請資料，申請一個提前終了日。
   此類實體應在財務年度終了日起六個月內提出申報。
3. 實體財務年度變更
   實體得隨時向稅管局申請變更其財務年度，譬如為使其財務年度與稅務會計年度一致而為之。但本項變更不得使財務年度的期間超過12個月。保得利可協助
   貴公司提出財務年度變更通報書。

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倘貴公司需要其他說明，請洽詢本公司。
敬祝商祺!

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保得利集團
www.portcullis.co