BVI's New FATCA and CRS Reporting Requirements

The British Virgin Islands implemented a new system for reporting obligations under the Foreign Account Tax Compliance Act (FATCA), Organisation for Economic Co-operation and Development Common Reporting Standards and Country by Country Reporting rules. Now, all BVI entities with such obligations must submit their reports through the BVI Financial Accounting Reporting System (BVIFARS). This move comes as a response to recommendations from the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes, aiming to enhance the effectiveness of automatic exchange of information (AEOI).

Despite the BVI's legislative compliance with technical requirements, a 2022 OECD report highlighted issues with actual AEOI performance. This prompted the Global Forum to demand improvements in domestic operational frameworks. The BVI government cited challenges posed by natural disasters like Hurricanes Irma and Maria, compounded by the COVID-19 pandemic, which affected timely data exchange. Consequently, the BVI requested a supplementary review, leading to an upcoming OECD on-site visit in early 2024.

SFM Supports BVI Reporting Changes: Expert Guidance, Compliance Assistance, and Timely Updates for Clients

The BVIFARS, launched in January 2024, facilitates FATCA, CRS, and CbC report submissions, with each entity required to pay an annual fee. Deadlines for enrolment and reporting vary, with FATCA enrolment due by April 1, 2024, and CRS enrolment/notification by April 30, 2024. The annual reporting deadline for both is May 31, 2024.

Acknowledging these changes, SFM, a leading corporate service provider, ensures clients remain informed about regulatory updates, including the latest requirements in BVI's tax compliance landscape. With SFM's commitment to keeping informed of industry developments, clients can navigate the complexities of new reporting procedures with confidence.

Amidst evolving regulatory frameworks, SFM stands ready to assist clients in meeting their obligations, offering guidance on enrolment deadlines, reporting procedures, and economic substance requirements.

As BVI entities adjust to the new reporting regime, SFM's dedication to client support remains unwavering. By providing timely updates and expert assistance, SFM ensures clients maintain compliance while leveraging opportunities for business growth in a changing regulatory environment.

SFM is committed to keep our clients updated with industry changes regularly and our team is available to address any queries. Please contact our dedicated team or email us at info@sfm.com.