Updates on classification & filing for BVI legacy companies25th May 2020
As we outlined in our last update the BVI has now released to the industry, a draft of the Data Model for filing companies’ details of their economic substance status, and related compliance measures (if applicable), via a filing by the company’s Registered Agent under the BVI Beneficial Ownership Secure Search system (BOSSs) platform, together with an explanatory Economic Substance Decision Tree, a copy of which is available here.
The BVI ITA have made it explicitly clear that there will be no extensions to the current timeframes provided under the relevant legislation. For further detail on the applicable timeframes, please see our earlier update here.
The first relevant financial period for legacy companies is due to end on 29 June 2020. The BVI ITA have made it clear that all entities will be required to make a new BOSS filing in respect of each subsequent financial period. Accordingly, each company will be required to provide its registered agent with the relevant economic substance information, which will necessitate an updated classification by each company of its current economic substance status. Whilst there is a 6-month period in which to make the filing through the BOSS platform, the second relevant financial period will commence on 30 June 2020 (unless otherwise changed) and an updated classification will need to be made.
Regardless of the filing deadline, which falls 6 months after the end of the relevant financial period (i.e. 31 December 2021), it is important that re-classification is undertaken at the beginning of the relevant financial period to ensure that where an entity is classified as falling within scope, the directors of the entity can ensure that any action required to ensure compliance with the legislation, is undertaken and implemented for the duration of the relevant financial period (i.e. from 30 June 2020).
The same methodology applies to new companies although the financial periods commence on incorporation and each anniversary thereafter (unless otherwise changed) and the relevant filing deadline falls 6 months after the end of the relevant financial period.
The NEST Team