British Virgin Islands News – Record Keeping Obligation
Record keeping obligation for BVI companies was a reform that came into effect in November 2012, under the Mutual Legal Assistance (Tax Matters) Act, 2012. Ever since all companies registered in the BVI are required to comply with the following:
- keep and retain account records and underlying documentation at the office of its registered agent, or at such other place within or outside the BVI as determined by its directors, for a period of at least five years from the date of completion of the transaction, or the termination of the business relationship to which they relate
- provide the registered agent with a written record of the physical address where the account records and underlying documentation of are not kept if they are not kept at the office of the registered agent. The registered agent should be notified within 14 days of any change to that location
By the way of clarification “accounting records” which includes underlying documentation, is defined by the OECD as “all documents and books used in the preparation of the tax return and all financial statements, including general ledger, subsidiary ledgers, sales slips, and invoices”.
For further information on changes to the regime and how they might affect you and your clients, please feel free to contact your KEY account managers.