Infiniti Pacific Properties Limited  is an international real-estate service provider. We provide a full range of real estate services, spanning from corporate occupier services to strategic consultancy, project appraisal, valuation, feasibility studies and market research, property management, facilities and asset management and transactional services. Following are some of our promoting projects.

BMI Professional Training Centre Limited strives to provide professional, high quality and reliable training courses. Apart from regular courses with fixed schedule and content, we also tailor-made corporate training courses that fulfill unique demands of corporate clients.

Our popular tailor-made directors' training courses covers a comprehensive range of topics related to listing rules, including director responsibility, code on corporate governance, responsibilities of the Board of listed companies and overview of Hong Kong Listing Rules etc. Our courses are recognized by HKEX.

Interested parties or organizations may visit our website: http://www.bmiptc.com

Or contact Ms. Chan at (852) 3970 9230 / schan@bmintelligence.com

BMI Professional Training Centre is pleased to offer the rental of conference room at a convenience location in Wan Chai. it is suitable for organizing events, such as seminars workshops, training, press conferences.

OVERVIEW

Responding to the resolution on a Code of Conduct for business taxation adopted by the Council of the European Union (EU), the provisions of ESA came into effect on 1 January 2019 and the Rules and Explanatory Notes on Economic Substance in the BVI were issued by the International Tax Authority (“ITA”) on 9 October 2019. If the economic substance requirements (“ESR”) apply to an entity, different requirements apply depending upon the activity the business undertakes.

COMPLIANCE

The issue of whether an entity has complied with the ESR is determined by reference to its activities (including its turnover, expenditure, staff, premises, location of equipment, and direction and management) over the course of a financial period. The ESR will be an on-going test, with annual reporting and filing requirements. In view of the implementation of the ESA which will depend on the type of relevant activity and the location of tax residency, entities may consider conducting business restructuring and tax planning to maximize the benefits.

Classification of relevant activities

An entity should firstly assess and classify whether its business activities fall under the definition of relevant activities, namely, banking, insurance, shipping, fund management, financing & leasing, headquarters, distribution and service centres, holding company and intellectual property.

Show substance in a jurisdiction

Any entity carrying on a relevant activity should ensure that the substance of the relevant activity is carried on within the BVI unless it can demonstrate a tax residence in a jurisdiction outside the BVI which is not on the EU list of non-cooperative jurisdictions for tax purposes (EU Blacklist).

Pure equity holding entity

A pure equity holding entity, which carries on no relevant activity other than holding equity participations in other entities and earning dividends and capital gains, may declare its tax residency in the BVI and fulfill the ESR by retaining the services of its registered agent in the BVI and subject to minimal reporting requirement.

Tax residence outside the BVI

An entity (other than a pure equity holding entity mentioned above) which declares to be a resident for tax purposes in a jurisdiction outside the BVI (which is not on the EU Blacklist) must make a claim to that effect to the ITA with supporting document, such as:

-       a letter or certificate issued by the competent authority for that jurisdiction, or

-   an assessment to tax on the entity, evidence of payment of tax,  oranyotherdocument, issued by the competent authority for that jurisdiction.

ENFORCEMENT AND PENALTIES

Entities which fail to meet the ESR will be subject to enforcement action. This can result in substantial fines, imprisonment and the striking-off of the entity. An entity should take immediate steps to identity the nature and location of its business activities in order to ascertain the required actions under the ESA.

NORCOLA COMPANY LIMITED, a member of BM Intelligence Group, provides our clients with a comprehensive range of corporate secretarial services, including assisting our clients to comply with the ESR in the BVI with effective solutions. For more information, please feel free to contact:

Name      :       Ms. Eva Lam

Tel           :      (852) 2159 5003 / (852) 5175 2662

Email       :       info@norcola.com.hk