Available Jurisdictions

British Virgin Islands

British Virgin Islands (BVI)

  1. Corporate taxation:

Residence – there is no concept of residence applicable to BVI corporate taxation.

Basis – There is no zero rated income tax regime for all BVI domiciled corporate entities.

Taxable income – No

Taxation of dividends – No

Capital gains – No

Losses – No

Rate – No

Surtax – No

Alternative minimum tax – No

Foreign tax credit – No

Participation exemption – No

Holding company regime – No

Incentives – No

  1. Withholding Tax:

Interest – There is no withholding tax on interest, but the BVI has implemented the EU savings tax directive.  Although the directive has been replaced as from 1 January 2016 and replaced by the common reporting standards, the final reporting obligation in the BVI is the year ending 31 December 2016 (with the reporting made in 2017).

Royalties – No

Technical service fees – No

Branch remittance tax – No

  1. Anti-avoidance rules:

Transfer pricing – No

Thin capitalization – No

Controlled foreign companies – No

Disclosure requirements – No

  1. Compliance and corporations:

Tax year  – Calendar Year

Consolidated returns – are not permitted; each company must file a separate return.

Filing requirements – None for corporate income tax purposes, but filing requirements apply for payroll tax, social security and stamp duty purposes.

Penalties – There are some penalties for failure to comply with the law.

Rulings – No

  1. Personal Taxation

 Basis – There is a zero-rated income tax regime for all BVI individuals and domiciled unincorporated entities.

Residence – An individual that is domiciled in the BVI is deemed to be resident.

Filing status – N/A

Taxable income – N/A

Capital gains – N/A

Deductions and allowances – N/A

Rates – N/A

BVI has concluded and signed 28 tax information exchange agreements.