The International Tax Authority (ITA) wishes to inform BVI Constituent Entities, that are a part of a Multinational Entity (MNE) Group, as defined under section 2 of the Mutual Legal Assistance Tax Matters (Amendment) Act (No. 8 of 2018) for the Country by Country Reporting, under the Base Erosion and Profit Shifting (BEPS) Action 13, that it will soon be ready to receive filings for Country by Country Reporting in accordance with section 38 of the Act.
All Constituent Entities resident for tax purposes in the BVI whether it is the Ultimate Parent Entity (UPE) or the Surrogate Parent Entity (SPE) or some other BVI entity that qualifies as a Constituent Entity and is a part of an MNE Group and is the reporting entity of the MNE Group, are reminded that it must submit filings with the International Tax Authority. It should be noted that where more than one BVI Constituent entity is a part of the same MNE Group, each BVI Constituent Entity has an obligation to register individually with the ITA, however; it must also identify the name of the Reporting Entity and the tax residence of the reporting entity for the MNE Group that it is a part of.
Please note, that the ITA is not receiving Country by Country Reports by email. Reporting for Country by Country will be done via the electronic portal, BVI Financial Account Reporting System (BVIFARS) only.
As mentioned in the ITA’s press release in December 2018, the ITA was in the process of updating BVIFARS to accommodate reporting for Country by Country. The electronic system is in its final stages of updates and it is intended for these updates to be completed soon with a view of going live during the first week of March 2020.
Constituent entities that have already registered with the ITA need not register again once the System becomes live. The registration confirmation and BVIFARs account number will be sent to the responsible person identified in the registration documents that were submitted to the ITA.
A further update will be issued to inform Reporting Entities of the commencement date for reporting along with any instructions required in light of the updates made.
For information on any matters relative to the International Tax Authority please feel free to contact us via the following means: telephone number: 1 284 468 4415, email addresses: BVIFARS@gov.vg or BVIITA@gov.vg.