• BVI Tax System

  • GENERAL

    The BVI does not levy corporation tax.

  • TAX RESIDENCY

    Tax Residency

    A company is considered to be a BVI tax resident company if its management and control is exercised in the BVI.

    Taxable Basis

    Not applicable since the BVI does not levy corporation tax.

  • TAX ADMIN

    Taxable Period

    Not applicable since the BVI does not levy corporation tax.

    Tax Returns

    There is no requirement for BVI companies to submit a tax return since there is no corporation tax in the BVI.

    Tax Assessments

    Not applicable since the BVI does not levy corporation tax.

  • CORPORATION TAX

    Corporation Tax

    The BVI does not levy corporation tax.

  • DIVIDENDS

    Dividends from Foreign Investments

    Dividend income from foreign investments is not subject to corporation tax in the BVI.

    Dividends from Local Investments

    Dividend income from local investments is not subject to corporation tax in the BVI.

    Withholding Tax on Dividends

    There is no withholding tax on dividend payments to local or foreign recipients.

  • INTEREST

    Interest Income

    Interest income is not subject to corporation tax in the BVI.

    Interest Expense Deductibility

    Interest expense is not tax-deductible since interest income is not taxable in the BVI.

    Withholding Tax on Interest

    The BVI does not impose any withholding tax on payments to foreign or local recipients.

  • ROYALTIES

    Royalty Income

    Royalty income is not subject to corporation tax in the BVI.

    Royalty Expense Deductibility

    Royalty expense is not tax-deductible since interest income is not taxable in the BVI.

    Withholding Tax on Royalties

    The BVI does not impose any withholding tax on royalty payments to foreign or local recipients.

  • TAX LOSSES

    Ordinary Tax Losses

    Not applicable since the BVI does not levy corporation tax.

    Group Relief

    Not applicable since the BVI does not levy corporation tax.

  • CAPITAL GAINS

    Disposal of Shares by Foreign Shareholder

    The profit on disposal of a BVI company by its foreign shareholder is exempt from taxation in the BVI.

    Capital Gains

    The BVI does not levy tax on capital gains.

    Capital Losses

    Not applicable since capital gains are not subject to capital gains tax in the BVI.

  • PARTNERSHIPS

    Partnership Profits

    General and Limited partnerships are treated as transparent entities for tax purposes which means that their profits are taxed directly in the hands of each partner.

  • BRANCHES

    Branch Profits

    A Branch is treated in the same manner as other types of companies in the BVI.

    There is no tax in the BVI on the remittance of the profit of a BVI to its foreign head office.

  • STAMP DUTY

    Stamp Duty

    Stamp duty is imposed on the transfer of land in the British Virgin Islands. It is imposed on the contractual value or the market value and ranges from 4% to 12%.

  • CAPITAL DUTY

    Capital Duty

    There is no capital duty in the BVI.

  • VAT

    The BVI do not levy VAT.