British Virgin Islands “Economic Substance”
Requirement – The benefits of UAE Residency as an alternative
The BVI Economic Substance (Companies and Limited Partnerships) Act, 2018 has come into force as from 1st January 2019 in order to meet the deadline set by the EU for compliance with the OECD’s Base Erosion and Profit Shifting requirements. Due to an international tendency toward transparency and reporting standards the BVI has adopted measures to ensure fair taxation which includes the new “economic substance” requirements.
In terms of the new Economic Substance Act, legal entities carrying out relevant activities will need to furnish proof of economic substance in the BVI by filing details of their total turnover, address, employees in the BVI and elsewhere, equipment of the entity, as well as management records amongst other requirements.
The increased monitoring and enforcement carries strict penalty where non-compliance is determined and one should therefore be mindful of the implications involved in establishing an entity in this jurisdiction.
An apt alternative to a BVI entity would be to incorporate in the United Arab Emirates which is:
- Centrally located on the Persian Gulf
- Politically stable
- Easily accessible
- Year round blue skies
- No income or wealth tax
With increased skepticism and crackdown related to golden passports and citizenship for investor schemes globally, residency in the United Arab Emirates offers clear solution to investors seeking to relocate and expand their portfolio.
The United Arab Emirates provide :
- Tax relief through its vast network of double tax treaties
- No quota for residency permit issuance
- Economic opportunity
- Unparalleled connectivity
Should you require assistance or wish to learn more of the benefits of the UAE Residency, please do not hesitate to contact us.
Senat MEA DMCC is a full service platform, founded in 2014, with roots in Dubai that go back as far as 1984. Dedicated to trust and efficiency, at Senat MEA DMCC we ensure that our clients are equipped with leading counsel in navigating the region while taking into account the global nature of business and the importance of developing long lasting relationships.
Senat MEA DMCC’s team of lawyers, accountants and business consultants are highly qualified and come from a variety of backgrounds enabling us to supply you with incomparable expertise and outstanding services.