Taxation in the British Virgin Islands is simple by comparative standards; photocopies of all of the tax laws of the British Virgin Islands would together amount to about 200 pages of paper. Taxation To tax is to impose a financial charge or other levy upon a taxpayer (an individual or legal entity) by a state or the functional equivalent of a state such that failure to pay is punishable by law in the British Virgin Islands The British Virgin Islands , also called the Virgin Islands is a British overseas territory, located in the Caribbean to the east of Puerto Rico. The islands make up part of the Virgin Islands archipelago, the remaining islands constituting the U.S. Virgin Islands. Technically the official name of the Territory is simply the "Virgin Islands& is mostly notable for what is not subject to taxation. The British Virgin Islands has:
- no capital gains tax A capital gains tax is a tax charged on capital gains, the profit realized on the sale of a non-inventory asset that was purchased at a lower price. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property. Not all countries implement a capital gains tax and most have different rates of taxation for,
- no gift tax In economics, a gift tax is the tax on money or property that one living person gives to another. The United States Internal Revenue Service says a gift is "Any transfer to an individual, either directly or indirectly, where full consideration is not received in return." Many gifts are not subject to tax, or are exempted from taxation,
- no sales tax A sales tax is a consumption tax charged at the point of purchase for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale. A portion of the sale may be exempt from the calculation of tax, because sales tax laws usually contain a list of exemptions. Laws governing the tax may or value added tax Value added tax , or goods and services tax (GST) is a consumption tax (CT) levied on any value that is added to a product. In contrast to sales tax, VAT is seen as neutral with respect to the number of passages that there are between the producer and the final consumer whereas sales tax is levied on total value at each stage (though in the U.S,
- no profit tax Profit tax in Hong Kong is Direct tax and also classified into Income tax,
- no corporation tax Corporate tax refers to a tax levied by various jurisdictions on the profits made by companies or associations. It is a tax on the value of the corporation’s profits. The general global trend of national corporate taxation is downwards - In the last ten years average rates fell from 35.0% to 26.30%, and
- no inheritance tax Inheritance tax, estate tax and death duty are the names given to various taxes which arise on the death of an individual. It is a tax on the estate, or total value of the money and property, of a person who has died. In international tax law, there is a distinction between an estate tax and an inheritance tax: an estate tax taxes the personal or estate duty Inheritance tax, estate tax and death duty are the names given to various taxes which arise on the death of an individual. It is a tax on the estate, or total value of the money and property, of a person who has died. In international tax law, there is a distinction between an estate tax and an inheritance tax: an estate tax taxes the personal, but
- contrary to popular belief, there is in fact income tax An income tax is a tax levied on the income of individuals or business . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate tax, corporate income tax, or profit tax. Individual in the British Virgin Islands, but the rate of taxation has been set at zero.[1]
The absence of most major forms of taxation in the Territory has led to the country being included on most recognised lists of tax havens Individuals and/or corporate entities can find it attractive to move themselves to areas with reduced or nil taxation levels. This creates a situation of tax competition among governments. Different jurisdictions tend to be havens for different types of taxes, and for different categories of people and/or companies,[2] although the jurisdiction prefers to style itself as a modern offshore financial centre An offshore financial centre , although not precisely defined, is usually a low-tax, lightly regulated jurisdiction which specializes in providing the corporate and commercial infrastructure to facilitate the use of that jurisdiction for the formation of offshore companies and for the investment of offshore funds.
There are a number of forms of taxation and revenue collection in the British Virgin Islands, but the majority of the Government's revenues are obtained directly from annual licence fees for offshore companies It is worth mentioning at this juncture that taxation of a company somewhere other than its place of incorporation is not by any means an exclusively offshore concept. By way of example consider a UK incorporated company which traded exclusively in France. If the board of directors of this company were based in France there would be no doubt that incorporated in the jurisdiction.
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other Caribbean Overseas Territories COT governments to ensure that the European Union s Draft Directive on Taxation of Savings does not become law in the Cayman Islands and the region Leaders and representatives from the Cayman Islands British Virgin Islands Anguilla Montserrat and the Turks and Caicos Islands met in The British Virgin Islands last Friday to discuss
