Use our interactive tax rate tool to compare tax rates by country or region. In 2005, the British Virgin Islands introduced a payroll tax on employment and “presumed employment”[4] in the British Virgin Islands. [5] The bill was introduced at the same time as the reduction of income tax in the region to zero. The numbers were indeed not a perfect balance, and the government (intentionally) reduced the amount of tax revenue it received from the transition to the payroll tax system. Virgin Islands property owners are reminded that property tax for 2022 is due and payable from September 1 to November 30. The UK in general and the City of London in particular have long been considered a global financial centre. Today, London is surpassed only by New York when it comes to the cities of the financial centers. This helps explain the popularity of the British Virgin Islands. On the one hand, that overseas territory is part of the United Kingdom.
On the other hand, it is a semi-autonomous region that allows it to enact its own unique financial laws and regulations. Tax is paid at a staggered rate that depends on the size of the employer. Current rates (as of June 2007) are 10% for small employers[6] and 14% for large employers. 8% of the total remuneration is deducted by the employee, the rest of the responsibility is assumed by the employer. The first allowance of $10,000 is exempt from payroll tax. There are a number of forms of taxation and revenue collection in the British Virgin Islands, but the majority of government revenue comes directly from annual royalties for offshore companies registered in the jurisdiction. The British Virgin Islands is a recognized jurisdiction in the international financial services sector, but many are beginning to opt for other Caribbean jurisdictions such as Anguilla, the Turks and Caicos Islands, the Cayman Islands, or even jurisdictions that are not British Overseas Territories, such as Mauritius or Singapore for their reputation. The reason these document taxes were not called stamp duty was that under the former International Business Companies Act (Cap.
291), corporations incorporated under that Act were exempt from stamp duty and, in order to maintain the payment obligations of these corporations, they were referred to as “cheque tax” or “fiduciary tax”. For foreign citizens, this tax is $50 per year for each first half-acre and $150 for the second half of the morning and $50 for each additional half-acre of land. Some possible changes to Hong Kong`s tax system, starting on 1. January 2023 are: (1) the taxation of passive offshore income transferred to Hong Kong, (2) the introduction of a substantive requirement and/or a taxable condition for the exemption of passive offshore income transferred to Hong Kong, and (3) the introduction of a participation exemption for dividends and profits from the sale of shareholdings. While passive offshore income may be taxed in Hong Kong in the future in certain circumstances, it is also worth considering whether Hong Kong should introduce a unilateral tax credit mechanism in the absence of a tax treaty to alleviate double taxation. The law also includes a number of “rump” taxes that were levied many years ago and exist only because of a lack of attention to updating the law; The amounts involved are tiny and are never applied in practice. For example, charter parties in the British Virgin Islands are technically subject to a 50¢ stamp duty, but despite the thriving bareboat charter industry, stamp duty is rarely, if ever, paid by charterers. KPMG`s Corporate Income Tax Table provides an overview of corporate tax rates around the world. In addition, there are a large number of different fees and charges levied under the Statutory Rates, Fees and Charges Act 2005.
The British Virgin Islands Financial Services Commission is the sole financial services regulatory authority in this area and, in collaboration with the British Virgin Islands Business Register, is responsible for authorizing and registering businesses or individuals to do business in this area. DISCLAIMER: Due to the generality of this update, the information contained in this document may not be applicable in all situations and should not be implemented without specific legal advice based on certain situations. The EU will continue to monitor the progress made by the greylisted countries and territories in implementing the EU and/or OECD recommendations and will consider any necessary updates in the next round of revisions to the EU tax lists in October 2022. Hong Kong companies operating in Bermuda or the British Virgin Islands or transacting with Bermuda or the British Virgin Islands should closely monitor future developments in this area and be prepared to assess the potential impact of future changes in the tax regimes of these countries on their business. The British Virgin Islands has no exchange controls. The U.S. dollar is both legal tender and is the default local currency. There are no restrictions on the movement of dollar funds to or from the British Virgin Islands. Holders of US dollars can freely convert them into other currencies.
In the British Virgin Islands, income tax is still technically levied on businesses and individuals, but the tax rate has been set at zero. [2] However, individuals are subject to a wage deduction of up to 8% for employees, 12% of which is paid by employers, compared to any salary over $10,000 per year.