The British Virgin Islands is an overseas territory that swears allegiance to Britain. The country’s currency of transaction is the US Dollar. The British Virgin Islands has a territorial tax system, and no tax is levied on any business incorporated in the BVI, even if you run a business outside BVI.
Economy of British Virgin Islands
The economy of the British Virgin Islands is one of the most prosperous in the Caribbean. Although tiny in absolute terms, because of the very small population of the British Virgin Islands, in 2010 the Territory had the 19th highest GDP per capita in the world according to the CIA World factbook. In global terms the size of the Territory’s GDP measured in terms of purchasing power is ranked as 215th out of a total of 229 countries. The economy of the Territory is based upon the “twin pillars” of financial services, which generates approximately 60% of government revenues, and tourism, which generates nearly all of the rest.
The BVI constitute one of the world’s most reputable international financial centres.
In 2015, British Virgin Islands has been assessed as the 34th in terms of global financial centres. This was the highest ranking of any offshore financial centre, and of any Latin American country. The Territory scored strongly in areas such as local taxation, rule of law, regulatory environment and quality of law for human resources. It scored less highly on infrastructure, access to capital and access to labour. The G-20 considers it a tax haven and its banking system is described as ‘opaque’
Taxation in British Virgin Islands
Taxation in the British Virgin Islands is mostly notable for what is not subject to taxation. The British Virgin Islands has:
- no capital gains tax;
- no gift tax;
- no sales tax or value added tax;
- no profit tax;
- no inheritance tax or estate duty;
- no corporation tax.
|Corporate tax||Income tax||VAT or sales tax||Capital gains tax||Payroll tax|
Starting a Business in British Virgin Islands