Request For Financial Period Alterations (2024-01-25)

Summary

This is a notice from the BVI International Tax Authority reminding authorized representatives and Registered Agents of the information required when applying to alter a legal entity's Financial Period under Rule 18 of the Rules on Economic Substance. It applies to alterations of any financial period except an entity's first one, and takes effect immediately for incomplete applications.

• Required application content: Notice to the ITA must include the entity's registered name, registered number, name and address of its Registered Agent, current commencement date of the next financial period, proposed new commencement date, and brief reasons for the alteration.
• Incomplete applications: Effective immediately, applications missing any of the required information will be returned for correction.
• Length limit: A financial period must not exceed twelve months in length.
• Registered Agent role: Registered Agents are encouraged to review third-party requests for completeness before submitting them to the ITA.

The notice also includes illustrative examples showing how to calculate the current and proposed new commencement dates when altering a financial period to align with a different accounting period.

Key obligations

• Applications to alter a legal entity's financial period (other than its first) must be made by notice to the ITA containing: registered name, registered number, RA name and address, current commencement date of the next financial period, proposed new commencement date, and reasons for the alteration.
• Applications lacking the required information will be returned for correction and must be resubmitted with complete details.
• A financial period must not exceed twelve months in length.
• Registered Agents are encouraged to review third-party financial period alteration requests for completeness before submitting them to the ITA.

Applies to

legal entities subject to economic substance requirements, authorized representatives, Registered Agents