FATCA Update-BVI

26th March 2015

We have been advised by BVI counsel that the British Virgin Islands International Tax Authority (“ITA”) this week released an updated version of its’ Guidance Notes on the International Tax Compliance Requirements of the Intergovernmental Agreements (“IGAs”) between the British Virgin Islands and the United States and the United Kingdom.

The Guidance Notes include the following material points:

Reporting Deadlines and Notification Process: The reporting deadline for the 2014 reporting year has been extended to June 30, 2015.  For the 2015 reporting year onwards, the deadline will going forward be May 31.  

BVI Financial Account Reporting System: Reporting British Virgin Islands Financial Institutions are required to submit their FATCA returns to the ITA via a web-based application, the BVI Financial Account Reporting System (“BVIFARS”). 

Reportable Accounts: If the holder of a Reportable Account is no longer a Specified US/UK Person, then such account will no longer be a Reportable Account. 

Collective Investment Vehicles: The definition of a “Collective Investment Vehicle” has been clarified and is now more aligned with other comparable jurisdictions. . 

Nominee Shareholders: a company acting as a Nominee Shareholder can elect to be treated as a Custodian Institution. 

Dormant and Liquidating Companies and Companies that have been struck off: The reporting obligations of these entities have been clarified, and it has been confirmed that reporting obligations still apply in respect of a company that has been struck off. Dormant and liquidating companies (where a liquidator has been appointed) will not be considered to be Investment Entities for the purpose of the IGAs.

Click here for Guidance Notes.