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British Virgin Islands — Orbitax Country Chapters
13.4. Transfer Pricing

There is no Transfer Pricing legislation in the British Virgin Islands.

Country-by-Country (CbC) Reporting

On 18 September 2018, the British Virgin Islands has implemented the CbC reporting requirements which are in line with the OECD guidelines. The British Virgin Islands' International Tax Authority (ITA) has issued Guidance Notes on 19 February 2019 (with an update on 1 March 2019), which provide further guidance on the CbC requirements. Accordingly, the CbC requirements are as below:

  • The standard threshold for CbC reporting for entities is a minimum of consolidated group revenue of EUR 750 million in the previous year; Only ultimate parent entities and qualifying surrogate parent entities resident in the British Virgin Islands are required to submit CbC reports electronically within 12 months following the end of the reporting fiscal year (i.e. 31 December 2019 for the first year beginning 1 January 2018). The CbC reporting requirements apply for reporting fiscal years beginning on or after 1 January 2018;
  • All constituent entities of MNE groups are required to register with the ITA electronically via the British Virgin Islands Financial Account Reporting System (BVIFARS) by the last day of the reporting fiscal year, which is extended up to 30 April 2019;
  • Constituent entities that are resident in the British Virgin Islands are required to identify the reporting entity of the MNE Group, regardless of the tax residence of the reporting entity;
  • Failure to comply with the registration requirement attracts a fine of up to USD 100,000; and
  • Failure to comply with any other CbC requirements can result in the entity (or its executives) being liable on summary conviction to a fine not exceeding USD 5,000 and/or imprisonment for a term not exceeding two years or both, or on conviction on indictment, to a fine not exceeding USD 100,000 and/or to imprisonment for a term not exceeding five years.