Mutual Legal Assistance (Tax Matters) (Amendment) Act, 2026

Summary

This Act amends the BVI Mutual Legal Assistance (Tax Matters) Act, 2020 to implement the amended Common Reporting Standard (CRS) approved by the OECD on 8 June 2023. It updates key CRS definitions, adds transitional reporting relief for certain account information, and replaces the general anti-avoidance provision with a broader rule.

• Non-reporting Financial Institution definition: Narrows the exclusion for Government Entities, International Organisations and Central Banks so it does not cover certain commercial financial activity or the maintenance of Central Bank Digital Currencies for non-exempt account holders.
• Pre-existing and New Account definitions: Adds 31 December 2025 as an alternative cutoff for Pre-existing Accounts and 1 January 2026 as an alternative opening date for New Accounts, where an account is treated as a Financial Account only because of the CRS amendments.
• New defined terms: Inserts definitions of Common Reporting Standard amendments, New Account, and Resident in the Virgin Islands (covering incorporation, place of effective management, or financial supervision).
• Transitional reporting relief (new section 26A): CRS amendments take effect from 1 January 2026, but for Reportable Accounts maintained as of 31 December 2025, information on a Controlling Person's or Equity Interest holder's specific role only needs to be reported, for reporting periods ending by the second calendar year after that date, if it is available in electronically searchable data held by the Reporting Financial Institution.
• Anti-avoidance rule (replaced section 34): Any arrangement or practice entered into with a main purpose of avoiding an obligation under the relevant Part of the Act will be disregarded, so the Act applies as if the person had not entered into it.

The amendments took effect from 1 January 2026 for CRS purposes, with the Act itself passed by the House of Assembly on 29 January 2026, assented to on 26 February 2026 and gazetted on 5 March 2026.

Key obligations

• Reporting Financial Institutions must classify accounts using the updated Pre-existing Account (31 December 2015 or, where applicable, 31 December 2025) and New Account (1 January 2016 or, where applicable, 1 January 2026) definitions.
• Reporting Financial Institutions must apply the revised Non-reporting Financial Institution definition when determining whether Government Entities, International Organisations or Central Banks qualify for exclusion, including for Central Bank Digital Currency activity and certain commercial financial activity.
• For Reportable Accounts maintained as of 31 December 2025, Reporting Financial Institutions must report a Controlling Person's or Equity Interest holder's specific role only if that information is electronically searchable, for reporting periods ending by the second calendar year following 31 December 2025.
• Persons and Reporting Financial Institutions must not structure arrangements or practices with a main purpose of avoiding an obligation under the relevant Part of the Act, as such arrangements will be disregarded under section 34.

Applies to

Reporting Financial Institutions, Non-reporting Financial Institutions, Government Entities, International Organisations, Central Banks, Custodial Institutions, Depository Institutions, Specified Insurance Companies

Deadlines

• 1st January, 2026: Common Reporting Standard amendments are deemed effective as of this date.
• 31st December, 2025: Cutoff date for Pre-existing Accounts and for accounts subject to the transitional Controlling Person reporting relief under new section 26A.
• reporting periods ending by the second calendar year following 31st December, 2025: Transitional relief period during which Controlling Person/Equity Interest holder role information need only be reported if electronically searchable.
• 1st January, 2016: Alternative reference date used in the New Account definition.

Related documents

• This document amends Mutual Legal Assistance (Tax Matters) Act (Revised 2020)