BVI Business companies are exempt from any taxation, regardless their source of income. The only tax existing in the BVI is payroll tax for companies employing local working force; the current rate is 8%, first USD 10 000 are tax exempt.
The BVI company must pay an annual fee to the government, depending on the maximum volume of shares permitted to issue and the date of incorporation of the company.
Stamp Duty
Stamp duty is levied at a rate of 12% on real estate transactions for non-BVI citizens.
The rates are lower for the citizens of the BVI - 4%.
No.
No.
No.
Trust income is exempt from tax if:
BVI income tax is not levied, unless the individual is an employee working for the BVI.
No.
Payroll tax and social contributions are paid by the self-employed and employers doing business in the BVI.
The payroll tax rate is 10% for small companies and up to 14% for large employers.
8% of the remuneration can be reimbursed at the expense of employees.
The first USD 10 000 is not subject to payroll tax.
Social contributions are paid at a rate of 4% by employees and at a rate of 4,5% by employers.
For citizens and companies of the BVI, land tax is levied at the rate of USD 3 per year for the first acre and USD 1 for each subsequent acre.
For foreign citizens, this tax is USD 50 per year for each first half acre and USD 150 for the second half acre and USD 50 for each subsequent half acre of land.
Real estate tax is 1,5% per annum of the estimated annual rental amount of real estate.
The BVI has entered into 28 Tax Information Exchange Agreements (TIEA) with the following jurisdictions:
28 TIEAs: Aruba, Australia, Canada, China, Curacao, Czech Republic, Denmark, Faroe Islands, Finland, France, Germany, Greenland, Guernsey, Iceland, India, Ireland, Japan, Netherlands, New Zealand, Norway, Poland, Portugal, Sint Maarten, South Korea, Sweden, United Kingdom, United States.
BEPS MLI: The BVI has not yet signed the Multilateral Convention to Implement Tax Treaty-Related Measures to Prevent Base Erosion and Profit Shifting (MLI).
CRS MCAA: On October 29, 2014, the BVI signed the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information (CRS MCAA), under which the BVI receives information from its financial institutions and automatically exchanges this information with other jurisdictions on an annual basis. The automatic exchange began in September 2017.
CbC MCAA: On July 8, 2019, the BVI signed the Multilateral Competent Authority Agreement on the Exchange of Country-by-Country Reports (CbC MCAA), which requires BVI banks to collect and transmit information about foreign resident accounts to their home country's tax authorities, who then automatically exchange this information with the tax authorities of other participating countries.
The country has joined the Hague Convention, which abolishes the requirement for legalization of foreign official documents and replaces it with the Apostle stamp.
