The British Virgin Islands are geographically located east of Puerto Rico, between the Caribbean Sea and the North Atlantic Ocean. These islands are an autonomous territory of the United Kingdom.
The British Virgin Islands enjoy a prosperous economy and a stable political environment. The government embraces innovative financial service concepts, consistent with its priority of protecting and further enhancing the reputation of the global finance industry. The British Virgin Islands are one of the oldest and most respected financial centers in the world.
The BVI Business Companies Act, 2004 (BVI BC Act) entered into force on 1 January 2005. Under the BVI BC Act, companies incorporated under the British Virgin Islands (BVI) Companies Act are exempt from all taxes provided under the BVI Income Tax Ordinance.
All Business Companies (BCs) are statutorily exempt from BVI taxes. However, such companies must pay an annual license fee. In general, a BC may not transact business with persons resident in the BVI or own interests in real property located in the BVI unless it obtains the relevant trade license from the BVI government. In addition, a BC may not carry on business as a bank, trust company, insurance company or reinsurance company without a license from the BVI Financial Services Commission.
There is no withholding tax on repatriation of profits, repayment of capital and loans or payments of royalty’s by a BVI Business Company.
The United Kingdom’s double tax treaties with Japan and Switzerland have been extended to the BVI, however these treaties are not used in practice. The BVI has not entered into any other tax treaties. However, the BVI has entered into tax information exchange agreements with Canada, China, Japan and the United States and with 22 European countries including France, Germany, Ireland, The Netherlands and the United Kingdom.
HBM B.V.I. Ltd.
The Lake Building, 1st Floor, Wickenhams Cay 1
Road Town Tortola
P.O. Box 3152
British Virgin Islands