Economic substance requirements for Saint Vincent and the Grenadines company in 2024

A company incorporated in St. Vincent and the Grenadines (SVG) is subject to economic substance reporting requirements. According to the International Cooperation (Economic Substance) Act, 2020, a St. Vincent company involved in a relevant activity must satisfy the economic substance regulations. SVG entities carrying on these relevant business activities must maintain a local permanent establishment or operational economic substance:

• St. Vincent companies that do not conduct the above relevant activities, do not fall under the scope of the economic substance requirements. For companies with a holding business as the relevant activity, only the relaxed economic substance requirements apply.
• An SVG entity has economic substance when i) it has local physical office premises and Staff and ii) important director decisions are made in the country and iii) income generating activities occur from the SVG office and iv) have an adequate amount of operating expenditures incurred in or from within the Islands.
• The purpose of this annual report is to give comfort to the SVG Government that i) their local entities are not misused for overseas tax avoidance and ii) the country is not perceived as a tax neutral jurisdiction and iii) local entities have sufficient ‘economic substance’ or permanent establishment in the country;
• SVG companies carrying out relevant activities are required to file a basic economic substance reporting return to the FSA, comprising details of i) the amount and type of income and with respect to the relevant activity and ii) including related expenses and assets and iii) management, employees, and physical.

Conclusion

As always, Healy Consultants Group will help our multi-national Clients’ to timely accurately and completely discharge their annual economic substance reporting obligations (if any).