British Virgin Islands

Basic taxes (briefly)

Personal tax 0%; 10%-14% с ФОТ
Corporate tax (in detail) No - for offshore companies
Capital gains tax. Details
VAT. Details
Other taxes payroll tax for companies hiring local employees
Government fee 350 USD
Stamp duty No

International tax agreement

Tax treaties entered Switzerland
   
Tax Exchange Information Agreement (TEIA) Aruba, Australia, Canada, China, Curaçao, Czech Republic, Denmark, Faroe Islands, Finland, France, Germany, Greenland, Guernsey, Iceland, India, Ireland, Isle of Man, Japan, Korea (Republic of), Netherlands, New Zealand, Norway, Poland, Portugal, Sint Maarten, Sweden, Switzerland United Kingdom, United States


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TAXES

Payroll Tax

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 $10 000 are tax exempt.

Annual government fee

• Companies with a share capital up to US$50,000 pay US$350 per year.
• Companies with a share capital more than US$50,001 pay the sum of US$1,100 per year.

Stamp Duty

A 12% is charged on property transactions within the BVI.

Capital Gains Tax

No

VAT

No

Withholding Tax

Dividends – No
Interest – No

Taxation of Trusts

Trust income is exempt from tax if:
- the trust is created by or on behalf of a non-resident person; and
- owns no land in the BVI; and
- does not carry on business in the BVI.

Personal Income Tax

No

Foreign exchange control

No

Social Security

Payroll tax for employees in the BVI at the rate of 8%:
Employer - 4.5% of the employee’s salary
Employee - 4%
The first $10,000 is exempt.

Real Estate Taxes

Land Tax - a $50 tax is levied per acre. Building Tax - The annual tax rate is 1.5% of the annual rental income.

ACCOUNTS

Accounts

A BVI BC must keep records and accounts sufficient to illustrate the company’s transactions and determine its financial position. The accounts are not audited or submitted to any authorities or available for public inspection.

The recent amendments to the legislation, namely Mutual Legal Assistance (Tax Matters) Act, 2012, have introduced an obligation to keep accounting records and underlying documents for at least 5 years (at the office of the company’s registered agent or at such other place as determined by the directors).

The BVI Business Companies Act imposes a penalty for not keeping accounting records, ie a fine of USD 10,000. If, however, a company fails to provide accounting records in compliance with international request pursuant to one of the BVI’s Tax Information Exchange Agreements, the fine will be up to USD 100,000, besides the Act also provides for such penalty as imprisonment for a term of up to 5 years.

    Taxes of BVI

    Min. rate for corporate tax No
    Capital gains tax No
    VAT No
    Withholding tax No
    Exchange control No - for offshore companies
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