British Virgin Islands Payroll & Social Contributions

Payroll Tax (the main employment tax)

• Overview of Payroll Tax — Payroll Tax is the principal direct tax in the BVI, charged on remuneration paid by employers and on self-employed persons carrying on business in the territory. The total rate is split between an employer share and a fixed 8% employee share that the employer withholds. The first US$10,000 of annual remuneration per employee is exempt.
• Total Payroll Tax rate — Class 1 (small) employers — 10% of remuneration (8% employee + 2% employer) percent (Payroll Taxes Act, 2004)
• Total Payroll Tax rate — Class 2 (larger) employers — 14% of remuneration (8% employee + 6% employer) percent (Payroll Taxes Act, 2004)
• Employee share of Payroll Tax — 8% (same for Class 1 and Class 2), withheld by the employer percent (Payroll Taxes Act, 2004)
• Payroll Tax annual exemption per employee — First US$10,000 of annual remuneration is exempt USD (Payroll Taxes Act, 2004)
• Class 1 employer qualification (must meet all) — Annual payroll ≤ US$150,000, annual turnover ≤ US$300,000, and ≤ 7 employees USD (Payroll Taxes Act, 2004)
• Class 2 employer trigger — An employer exceeding any one Class 1 threshold (payroll > US$150,000, turnover > US$300,000, or > 7 employees) is a Class 2 employer (Payroll Taxes Act, 2004)
• Payroll Tax filing & remittance deadline — Monthly return and payment due by the 21st of the following month ((approx — confirm)) (Payroll Taxes Act, 2004)
• Social Security contribution — total rate — 8.5% of insurable earnings (4% employee + 4.5% employer) percent (Social Security Act)
• Social Security — employee share — 4% of insurable earnings percent (Social Security Act)
• Social Security — employer share — 4.5% of insurable earnings percent (Social Security Act)
• Social Security maximum insurable earnings — US$51,000 per year (2025); rising to US$53,400 per year from 1 January 2026 USD (Social Security Act)
• National Health Insurance (NHI) — total rate — 7.5% of insurable earnings (3.75% employee + 3.75% employer) percent (National Health Insurance Regulations)
• NHI maximum insurable earnings — US$102,000 per year (2025); rising to US$106,800 per year from 1 January 2026 USD (National Health Insurance Regulations)
• Self-employed Payroll Tax — Self-employed persons pay Payroll Tax at the applicable class rate (10% Class 1 / 14% Class 2) on their deemed remuneration percent (Payroll Taxes Act, 2004)