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BVI Company Taxation

Taxation in the British Virgin Islands is relatively simple by comparative standards, it is mostly notable for what is not subject to taxation.

The British Virgin Islands has:

  • No Corporation tax
  • No Capital gains tax
  • No sales tax or value added tax
  • No inheritance tax or estate duty
  • There is income tax in the British Virgin Islands, but the rate of taxation has been set at zero

The Income Tax Act exempts BVI companies from income tax.

BVI Legislation

The BVI is the world’s pre-eminent corporate domicile, since the adoption of its BC Act in 2004, approximately 650,000 IBC companies have been incorporated in the territory.

The number of new registrations has averaged more than 61,000 for the past seven years.

Other jurisdictions have introduced legislation similar to the BVI, in an effort to compete for company formation business. However, the BVI has maintained its leadership position thanks to the flexibility of its legislation, the quality of its financial services, the efficiency of its Registry of Corporate Affairs, its commitment to privacy, and its integrity and stability as a offshore jurisdiction.

BVI Double Tax Treaties

Legislation has been drafted to ensure the BVI is fully compliant with the European Union (EU) Savings Tax Directive and EU Code of Conduct on Business Taxation, as required by the UK of all its Overseas Territories.