The British Virgin Islands Government has recently announced plans to make substantial changes to the tax regime in 2017, and to strengthen enforcement efforts this year.
The Budget announcement for 2016 announced three key changes:
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Import duties will be calculated on a good’s Cost, Insurance and Freight (CIF) value, rather than its Free On Board (FOB) value;
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The fee structures for work permits will be reviewed to bring the fees more into line with those of other UK overseas territories and;
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The tax authority will take a more aggressive approach to the collection of current taxes, fees, and arrears
In terms of the changes for 2017, the BVI Government intends to adopt a “modern, more progressive payroll tax system” and review the stamp duty regime currently in place.
The Government of BVI also has intentions to introduce an environmental levy and to harmonise the existing fee and tax structure for hotels and yachts. In addition, they will begin working on a new Patents and Copyrights Act to strengthen and completely modernize the BVI’s intellectual property (IP) laws, following implementation of a new Trademarks Act.
Source: Mike Godfrey, Lowtax.net, 15 February 2016