British Virgin Islands Tax Overview

British Virgin Islands Tax Overview

The BVI tax system at a glance

The British Virgin Islands is a no-direct-tax jurisdiction: there is no personal income tax, no corporate income tax, no capital gains tax, no inheritance tax and no general VAT/GST. The principal direct tax on economic activity is Payroll Tax on remuneration, alongside Social Security and National Health Insurance contributions, stamp duty, land/house tax and customs duties.

• Standard tax/contribution year — Calendar year (1 January to 31 December) (Payroll Taxes Act, 2004)
• Official currency — United States dollar (USD) (Currency Notes Act)
• Tax authority (payroll, stamp, property) — Inland Revenue Department, Government of the Virgin Islands (Payroll Taxes Act, 2004)
• Companies registry / financial services regulator — BVI Financial Services Commission (Registry of Corporate Affairs) (BVI Business Companies Act, 2004)
• Personal income tax — None — 0% (no personal income tax levied) percent (Income Tax Act (rate reduced to nil))
• Corporate income tax — None — 0% (no corporate income tax levied) percent (Income Tax Act (rate reduced to nil))
• Capital gains tax — None — 0% percent (No capital gains tax statute in force)
• VAT / GST — None — the BVI has no value added tax or goods and services tax (No VAT/GST statute in force)
• Headline Payroll Tax (the main direct tax) — 10% (Class 1 employers) or 14% (Class 2 employers) of remuneration percent percent (Payroll Taxes Act, 2004)
• Basis of taxation — Not income-based; Payroll Tax applies to remuneration paid by employers/self-employed persons carrying on business in the BVI, regardless of residence (Payroll Taxes Act, 2004)
• Main recurring filing deadline (Payroll Tax) — Monthly — payroll tax return and payment due by the 21st day of the following month ((approx — confirm)) (Payroll Taxes Act, 2004)
• Annual land and house tax due date — Due annually by 1 September (Land and House Tax Act)