Belize passed the Economic Substance Act
Under pressure from the OECD Forum on Harmful Tax Practices (FHTP), and in particular the European Union, Belize passed the Economic Substance Act (ESA). Most offshore jurisdictions, including BVI, Cayman and Seychelles, have adopted similar laws under similar pressures.
The IFSC has clarified the requirements, timings for Economic Substance Filling which all companies will be obligated to do within nine (9) months of the end of its fiscal year and, it is an offence should the company fail to do so.
The IFSC has provided a comprehensive guidance notes in regards to the Economic Substance so as to help better understand and classify operations.
All companies incorporated before January 2020 its first reporting period for the company shall commence on the 30th April 2020 and ends 30th April 2021. The company has nine (9) months to file after the end of the reporting period, which means the deadline for submission of Economic Substance Reporting to the IFSC will be 30th January 2022.
All companies incorporated on or after the 1st January 2020 the date of its incorporation shall mark the start of its reporting period and end on the anniversary of its incorporation.