Update on Economic Substance Rules

BVI Finance have sent a circular on the second revision of the Rules issued by the BVI International Tax Authority under the Economic Substance (Companies and Limited Partnership) Act, 2018. The Rules were published on 10 February, 2020 and can be found at http://www.bvi.gov.vg/Economic-Substance.

Changes are understood not to be substantial and are generally made to improve or clarify statements.

A summary of the changes are as follows:

• the anticipated duration of compliance plans have been clarified in paragraph 2.12;
• the procedure to file tax residency claims have been clarified in a new paragraph 4.3;
• the reference to ‘general partner’ has been corrected in paragraph 5.26;
• paragraphs 5.28 and a related sentence in 2.7 have been deleted (we understand as possibly ambiguous);
• clarification and examples of IP holding business were added to paragraphs 5.31 and 5.32;
• clarification and an example of distribution and service centre business were added to paragraph 5.36;
• where strategic decisions are to be taken has been clarified in paragraph 7.4;
• where core income generating activities are to be performed have been clarified in paragraph 7.19;
• clarifications on outsourcing were added to paragraph 7.22 and 7.23;
• paragraph 8.2 has been shortened;
• the summary on the applicability of the Rules have been set out more clearly in paragraph 11.10

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PORTCULLIS GROUP
www.portcullis.co

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經濟實質法規則更新

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請參閱連結為英屬維京群島金融局由國際稅賦局根據2018年經濟實質(公司和有限合夥) 於2020年2月10日發佈更新第二版. 可於此取得更新版: http://www.bvi.gov.vg/Economic-Substance.

係瞭解變更非實質性且通常為改進或澄清陳述。

摘要總結變更如下:

• 第2.12段澄清合規計劃的預計期間；
• 第4.3段澄清歸檔稅務居民要求程序；
• 第5.26段 “普通合夥人” 的參考已與更正；
• 第5.28段和關聯第2.7段句子已刪除（我們理解此模糊籠統）；
• 第5.31和5.32段增加智慧財產權持有業務的澄清與範例；
• 第5.36段增加經銷與服務中心業務的澄清與範例；
• 第7.4段澄清制訂戰略決策的部分；
• 第7.19段澄清產生核心業務活動部分；
• 第7.22和7.23段增加澄清外包服務；
• 第8.22段縮短簡化；
• 第11.10段更明確列出《規則》的適用性摘要

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保得利集團
www.portcullis.co