Unofficial Consolidation of the Mutual Legal Assistance (Tax Matters) Act

Summary

This is an unofficial consolidation, maintained by the International Tax Authority (ITA), of the Mutual Legal Assistance (Tax Matters) Act, the BVI's core legislation for international tax information exchange. It gives effect to the US-UK tax information exchange agreement, FATCA (Model 1 IGA with the USA), the Common Reporting Standard (CRS), and Country-by-Country (CbC) reporting under BEPS Action 13. The consolidation reflects amendments up to Act 1 of 2026, deemed effective 1 January 2026.

Structure of the Act

• Part I - General exchange of information: Establishes the ITA as competent authority, gives it powers to request information, apply for search warrants, conduct interviews and tax examinations, and imposes confidentiality obligations on anyone involved in a request.
• Section 5A - record keeping: Requires every company to keep records and underlying documentation (in addition to BVI Business Companies Act requirements) either at its registered agent's office or another notified location, retained for at least five years.
• Part II - FATCA (US Model 1 IGA): Requires Reporting Virgin Islands Financial Institutions to establish due diligence arrangements, register, appoint third parties where relevant, apply compliance measures, and report to the ITA, with anti-avoidance and penalty provisions.
• Part III - Common Reporting Standard: Requires Virgin Islands Financial Institutions to establish policies and procedures, register with the ITA, file CRS returns in the prescribed form, apply due diligence and compliance measures, and complies with anti-avoidance rules.
• Part IV - Country-by-Country reporting: Requires constituent entities of qualifying multinational groups to register with the ITA and file Country-by-Country Reports, subject to confidentiality protections and penalties for non-compliance.

Breach of information requests, confidentiality obligations, or FATCA/CRS/CbC obligations can result in criminal offences, with penalties ranging from summary fines and imprisonment to more serious fines and imprisonment on indictment. The Act also empowers the Minister to make Orders specifying required information, manner and deadlines for compliance.

Key obligations

• Companies must keep records and underlying documentation either at the registered agent's office or another location, and retain them for at least five years from completion of the relevant transaction or termination of the business relationship (section 5A).
• Companies must notify their registered agent in writing of the physical address where records are kept if kept elsewhere, and must notify any change of location within fourteen days of the change (section 5A(3)).
• Persons issued a notice under section 5 must provide the specified information within the time, form and verification required by the Authority, or commit an offence.
• Reporting Virgin Islands Financial Institutions must establish and maintain due diligence arrangements, register with the Authority, apply compliance measures, and report as required under Part II (FATCA/Model 1 IGA).
• Virgin Islands Financial Institutions must establish policies and procedures, register with the Authority, file CRS returns in the prescribed form, and apply compliance measures under Part III.
• Constituent entities of relevant multinational groups must register with the Authority and file Country-by-Country Reports within the time specified under Part IV.
• Persons notified of, or involved in, a request for information must keep the fact and particulars of the request confidential except as permitted by the Agreement.
• Persons must comply with any Order made by the Minister specifying information, manner, and deadlines for provision of information, or commit an offence.

Applies to

BVI Business Companies, Reporting Virgin Islands Financial Institutions, Virgin Islands Financial Institutions, constituent entities of multinational enterprise groups subject to Country-by-Country reporting, registered agents, persons or entities holding information relevant to a tax information exchange request

Deadlines

• fourteen days of the change of location: A company must notify its registered agent of a new address for its records and underlying documentation within fourteen days of any change of location (section 5A(3)).
• 1 January 2026: Act No. 1 of 2026 amendments are deemed effective from this date.
• 14 August 2025: Act No. 18 of 2025 amendments came into force on this date.
• 1 June 2022: Act No. 4 of 2022 amendments came into force on this date.