--- oa_review_kit: v1 guide_slug: bvi-tax guide_version: bvi-tax@2026-04-13T17:53:06.806Z archetype: personal_income --- # Review kit: Bvi Tax Thank you for reviewing this Guide. This kit is one file with three parts: how to use it, an interview prompt for your AI, and the Guide itself. ## How to use this kit (3 steps, about 15 minutes) 1. Open the AI you already use (ChatGPT, Claude, Gemini, anything that reads markdown) and paste in everything from "INTERVIEW PROMPT" below, including the Guide at the end. 2. Your AI interviews you like a colleague, one question at a time. Just talk: war stories, walk-throughs, the mistakes you catch. No writing required. 3. Your AI writes your answers up as a single markdown file. Hand it back at openaccountants.com/skills/bvi-tax/handback (also linked from the Guide page: "Hand back your file"). What you added is published under your name and credential. If your AI cannot produce the exact output format, hand back whatever you have: a revised Guide file, a worksheet, or plain notes. We take those too, and a person reviews them by hand. The format below is the one we can apply straight away. --- # INTERVIEW PROMPT (paste from here down into your AI) You are interviewing a practising accountant about how they actually do the work covered by the attached Guide ("Bvi Tax", slug `bvi-tax`). Interview them like a colleague doing a handover. Do not lecture. Ask ONE question at a time and wait for the answer. Chase war stories and specifics: what kind of client, which portal step, how big the penalty was. The rates, thresholds, and citations are our job; we refresh those from primary sources. Capture ONLY what is NOT derivable from law: - order of operations, and what a wrong order corrupts - what to ask a client before computing anything - what to assume when a fact is unknown, and how it gets flagged - the most-missed traps, with penalty size and who falls in - how the portal or filing channel actually behaves - what has to reconcile before anyone signs - when to refuse the work and hand it to a human specialist If the accountant corrects a rate, threshold, or deadline in the Guide along the way, record it in the FACT CORRECTIONS table, but do not steer the interview toward numbers. ## Questions to work through Ask these in order, one at a time. Skip any the accountant has already covered; follow up where a story has specifics worth pinning down. Each question is tagged with the method slot(s) it feeds. 1. [intake_questions] A new personal-tax client sits down. What are your first five questions before you touch a number? 2. [intake_questions] [conservative_default] Which of those answers, if missing, makes you stop rather than estimate? 3. [evidence] Which documents do you insist on seeing, and which do you take the client's word for? 4. [sequence] In what order do you build the return, and what goes wrong when someone does it backwards? 5. [trap] What deduction or relief do clients most often believe they're entitled to but aren't? 6. [trap] What computation does software or AI most often get wrong on returns you've reviewed? 7. [judgment_rule] When the law gives two routes (regime choice, standard vs itemized, allowance vs actuals), how do you actually pick, and what do you write down about the choice? 8. [cross_check] What triggers the tax authority's mismatch letters in your experience, and what do you reconcile up front to prevent them? 9. [edge_case] Tell me about a client whose side income (platform, rental, foreign) changed the whole shape of the return. What did you do differently? 10. [filing_mechanics] Walk me through the e-filing itself: the verification step, the deadline nobody knows, what happens if the client doesn't do their part. 11. [scope_gate] What kind of personal-tax client do you turn away or send to a specialist? 12. [handback_protocol] What exactly do you hand the client before anything is filed? What's in your working paper? ## Method slots (for tagging the write-up) - `scope_gate` (Scope gate and refusals): when to stop and send the client to a human - `sequence` (Order of operations): what order to do things in, and what a wrong order corrupts - `intake_questions` (Client intake questions): what to ask a client before computing - `evidence` (Documents and evidence): which documents to insist on, and what is draft-grade vs file-grade - `judgment_rule` (Judgment rules): how a practitioner actually picks when the law allows two routes - `conservative_default` (Conservative defaults): what to assume when a fact is unknowable at draft time - `trap` (Traps and most-missed items): the mistakes everyone makes, what they cost, and who falls in - `filing_mechanics` (Portal and filing mechanics): how submission actually works: channel, order, what locks - `cross_check` (Cross-checks before signing): what has to reconcile with what before delivery, and how close is close enough - `pattern_library` (Pattern library): how messy real-world data (bank lines, payout platforms) maps to tax categories - `edge_case` (Edge-case playbook): the client situations that change the method, not just the numbers - `unsettled_law` (Unsettled-law flags): what not to finalise right now, and why - `handback_protocol` (Hand-back protocol): what the finished working paper contains and who reviews it ## Output format: oa-handback v1 When the interview is done, write the answers up as ONE markdown file in exactly this shape. Fill in the reviewer's real name, credential, and email (ask for them at the end if they have not come up). Every method block gets a `### [method:]` heading where `` is one of the 13 slot ids above. Keep `guide_slug` and `guide_version` exactly as given. Omit any section the interview produced nothing for, but keep the headings that remain exactly as shown. The `fact_key` column may be left blank when unknown. ```markdown --- oa_handback: v1 guide_slug: bvi-tax guide_version: bvi-tax@2026-04-13T17:53:06.806Z reviewer_name: reviewer_credential: # free text: CPA, EA, ACCA, Steuerberater... reviewer_email: verdict: --- ## METHOD ### [method:filing_mechanics] ### [method:intake_questions] - - ... ## FACT CORRECTIONS | fact_key | current | correct | source | |---|---|---|---| | | | | | ## FLAGS - [unsettled] - [refer] ## NOTES ``` If for any reason you cannot produce this exact format, output the accountant's corrections and methods as clear plain notes instead. The hand-back page accepts plain notes and revised Guide files too; this format is an optimization, never a gate. --- # THE GUIDE UNDER REVIEW --- name: bvi-tax description: Use this skill whenever asked about British Virgin Islands (BVI) taxation, payroll tax, or the absence of income tax and VAT. Trigger on phrases like "BVI tax", "British Virgin Islands tax", "BVI VAT", "BVI payroll tax", or any request involving BVI tax compliance. BVI does NOT have income tax, capital gains tax, or VAT. The primary tax is payroll tax. ALWAYS read this skill before handling any BVI tax work. jurisdiction: VG domain: income-tax tax_year: 2025 --- # bvi-tax ## Section 1 -- Quick Reference **Quick Reference** | Field | Value | | --- | --- | | Country | British Virgin Islands (BVI) | | Tax | Payroll tax (primary), customs duties, property tax, social security, NHI | | Currency | USD | | Tax year | Calendar year | | Primary legislation | Payroll Taxes Act, 2004 (as amended); Customs Management and Duties Act | | Supporting legislation | BVI Business Companies Act, 2004; Economic Substance Act, 2018 | | Tax authority | Inland Revenue Department (IRD) | | Filing portal | https://www.bvi.gov.vg/departments/inland-revenue-department | | Filing deadline | Payroll tax monthly by 15th; annual reconciliation March 31 | | Contributor | Open Accountants Community | | Validated by | Pending -- requires sign-off by a licensed BVI practitioner | | Skill version | 2.0 | ### Tax Landscape **Tax Landscape** | Tax Type | Status | | --- | --- | | Income Tax (personal/corporate) | None | | Capital Gains Tax | None | | VAT / Sales Tax | None | | Withholding Tax | None | | Payroll Tax | Yes | | Customs Duties | Yes | | Property Tax | Yes | | Social Security (SSB) | Yes -- 9% total (4.5% each) | | National Health Insurance (NHI) | Yes -- 7.5% total (3.75% each) | ### Payroll Tax Rates - **Class 1 payroll tax rate** — Employer 2% + Employee 8% = 10% (<=7 employees, payroll <=USD 150,000, revenue <=USD 300,000) - **Class 2 payroll tax rate** — Employer 6% + Employee 8% = 14% (all others) - **Employee exemption** — 10,000 USD (first USD 10,000 annual remuneration exempt) ### Conservative Defaults **Conservative Defaults** | Ambiguity | Default | | --- | --- | | Unknown employer class | Class 2 | | Unknown duty rate | General merchandise | | Unknown economic substance | Assume relevant activity applies | ## Section 2 -- Required Inputs and Refusal Catalogue ### Required Inputs **Minimum viable** -- payroll records, employee count, employer classification. **Recommended** -- remuneration breakdown by employee, BVI BC registration, prior returns. **Ideal** -- complete payroll export, economic substance filings, customs records. ### Refusal Catalogue - **R-VG-1 -- Income tax** — BVI has no income tax. _(R-VG-1)_ - **R-VG-2 -- VAT/sales tax** — BVI has no VAT or sales tax. _(R-VG-2)_ - **R-VG-3 -- Economic substance detail** — Escalate to specialist. _(R-VG-3)_ - **R-VG-4 -- CRS/FATCA compliance** — Escalate to specialist. _(R-VG-4)_ ## Section 3 -- Compliance Pattern Library ### 3.1 Employer Payment Patterns **Employer Payment Patterns** | Pattern | Treatment | Notes | | --- | --- | --- | | SALARY, WAGES, BONUS, COMMISSION | Payroll tax base | Include in taxable remuneration | | BENEFITS IN KIND | Payroll tax base | Include | | CONTRACTOR (independent) | Not payroll tax | Verify independence | | SSB CONTRIBUTION | Social security | 4.5% employer + 4.5% employee | | NHI CONTRIBUTION | Health insurance | 3.75% + 3.75% | ### 3.2 Customs Duty Categories **Customs Duty Categories** | Category | Rate | | --- | --- | | General merchandise | 5% -- 20% | | Food/essential goods | Lower or exempt | | Motor vehicles | 20% + environmental levy | | Building materials | 5% -- 10% | ### 3.3 BVI BC Annual Fees **BVI BC Annual Fees** | Authorized Shares | Annual Fee (USD) | | --- | --- | | Up to 50,000 (no par) | 450 | | 50,001+ | 1,200 | ## Section 4 -- Worked Examples ### Example 1 -- Payroll Tax (Class 2) **Input:** Monthly payroll USD 50,000, 10 employees. **Computation:** Employer payroll tax: 6% x USD 50,000 = USD 3,000/month. Employee: 8% on remuneration above USD 10,000 annual exemption. Plus SSB 4.5% each + NHI 3.75% each. ### Example 2 -- BVI BC Annual Obligations **Input:** BVI BC with 10,000 no-par shares, no employees. **Classification:** Annual fee USD 450. No income tax. No payroll tax. Economic substance filing if conducting relevant activities. ### Example 3 -- Import Duty **Input:** Office equipment USD 10,000. **Computation:** Duty ~15%: USD 1,500. No VAT. No sales tax. ## Section 5 -- Tier 1 Rules (When Data Is Clear) ### 5.1 No Income Tax / No VAT - **No income tax / no VAT** — No personal/corporate income tax, no capital gains tax, no VAT/sales tax, no withholding tax, no estate tax. ### 5.2 Payroll Tax Filing - **Payroll tax filing deadlines and penalties** — Monthly by 15th. Annual reconciliation March 31. Late filing: USD 50/day. Late payment: 1.5%/month. ### 5.3 Social Security and NHI - **SSB and NHI rates** — SSB: 4.5% employer + 4.5% employee. NHI: 3.75% + 3.75%. ## Section 6 -- Tier 2 Catalogue (Reviewer Judgement Required) ### 6.1 Payroll Tax Exemptions - **Payroll tax exemptions** — Small business concessions may apply. Flag for practitioner. ### 6.2 Economic Substance - **Economic substance** — Entities conducting relevant activities must demonstrate adequate substance in BVI. Flag for specialist. ### 6.3 Stamp Duty - **Stamp duty on real estate** — Real estate: 4% buyer + 4% seller. Belonger concessions may apply. ## Section 7 -- Excel Working Paper Template ``` BVI TAX -- Working Paper A. PAYROLL TAX A1. Total remuneration ___________ A2. Employer class ___________ A3. Employer payroll tax ___________ A4. Employee payroll tax ___________ B. SOCIAL SECURITY & NHI B1. SSB employer (4.5%) ___________ B2. NHI employer (3.75%) ___________ C. BVI BC FEES C1. Annual government fee ___________ REVIEWER FLAGS: [ ] Employer classification confirmed? [ ] Employee exemption applied? [ ] Economic substance filing required? ``` ## Section 8 -- Bank Statement Reading Guide **Bank Statement Reading Guide** | Bank | Format | Key Fields | | --- | --- | --- | | VP Bank, First Caribbean | PDF, CSV | Date, Description, Debit, Credit, Balance | | Scotiabank BVI | CSV | Date, Narrative, Amount | ## Section 9 -- Onboarding Fallback ``` ONBOARDING QUESTIONS -- BVI TAX 1. Do you have employees in BVI? 2. How many employees? 3. Total payroll? 4. Employer class (1 or 2)? 5. Do you import goods? 6. BVI Business Company held? 7. Relevant activities for economic substance? 8. Non-Belonger employees (work permits)? 9. Property in BVI? 10. Prior returns available? ``` ## Section 10 -- Reference Material **Reference Material** | Topic | Reference | | --- | --- | | Payroll tax | Payroll Taxes Act, 2004 | | Customs | Customs Management and Duties Act | | BVI BCs | BVI Business Companies Act, 2004 | | Economic substance | Economic Substance Act, 2018 | | Social security | Social Security Act | | Health insurance | National Health Insurance Act | ## PROHIBITIONS - NEVER state BVI has income tax -- it does not - NEVER state BVI has VAT or sales tax -- it does not - NEVER apply income tax or VAT calculations to BVI transactions - NEVER ignore payroll tax obligations - NEVER confuse government fees with taxes - NEVER ignore economic substance requirements - NEVER ignore SSB and NHI contributions - NEVER present calculations as definitive ## Disclaimer This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. 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