Company Taxes

Corporations registered under the IBC Ordinance are exempt from BVI Income Tax. There is no inheritance tax, death duty, capital gains, capital transfer or estate tax.

Company tax rate is 15% on chargeable income. Partnership interest is declared as such, but each partner is individually liable on his share of income.

Personal Income Taxes

All persons employed in the Territory are liable to pay Income Tax on their gross earnings.

Income Tax is payable under a system called PAYE (Pay As You Earn).

Under the PAYE system, tax is paid on weekly wages or monthly salaries, annual salaries, bonuses, commissions, director’s fees and any other income from employment.

It is the employers duty to deduct Income Tax from the pay of his employees whether or not he has been directed to do so by the Tax Office. If he fails to do so, he may be required to pay to Inland Revenue the tax which he should have deducted, and in addition, be liable to penalties.

Tax tables for computation are available at the Inland Revenue Department.

Income taxes are payable at the rate of 3% on the first $2,500 of income 6% on the next $5,000 of income 10% on the next $7,500 of income 15% on the next $10,000 of income 20% on the income exceeding $25,000

Land Taxes

Non-British Virgin Islanders pay $20.00 per year on the first acre or part of an acre. All remaining acres or part thereof are taxed at $10.00 per year. British Virgin Islanders pay $3.00 per year on the first acre or part thereof, and $1.00 per acre on remaining acres or part thereof.

House Taxes

A house tax is levied on all privately owned buildings. The rate is 1 ½ % of the assessed value.

Customs Duties

Rates range from 5% to 20% charged based upon cost, insurance and freight value of the articles imported.

Social Security

All employees, with a few exceptions, must register with the Social Security Board. The process requires the completion of an Employee’s Registration Form. Identification, preferably a passport or birth certificate, is required. After registering, an identification card bearing your Social Security number is issued. Employers are also required to register, whether they are individuals, partnerships, companies or corporations. They receive an Employer’s Registration number. A self-employed person must also register with the Social Security Board.

Once a person is registered, they are always registered. There is no need to re-register.

When individuals begin a new job after being registered previously, they must inform their employer of their Social Security number.

The Social Security is applicable to all working people between the ages 15 and 65, whether they are engaged under a contract of service or self-employed.

Insured workers are covered up to a maximum of $265.38 per week of earnings in the case of weekly paid employees and $1,150.00 per month in the case of monthly paid employees. All employed persons, regardless of age, are covered for Employment Injury Benefit. All employees contribute 4% to the scheme, while civil servants contribute 3 ½%. Government contributes 4%, while other employers contribute 4 ½%.. The following benefits are available to eligible insured persons under the Social Security Scheme:

Sickness Benefit, Invalidity Benefit, Maternity Benefit, Employment Injury Benefit, Age Benefit, Survivors Benefit, Funeral Grant.

For more information contact: The Social Security Board P.O. Box 698 Road Town, Tortola British Virgin Islands

Symbolism of British Virgin Islands Trade and Investment logo: Trade: Represented by FOUR ARROWS expanding service to the four corners of the earth

Investment: Represented by the DOLLAR SIGN for economic growth and financial stability.

Promotion: Represented by the CREST OF ST.URSULA, symbol of the Government of the British Virgin Islands historically and presently.

Government of British Virgin Islands, Trade & Investment Promotion Department, Office of the Chief Minister Road Town, Tortola British Virgin Islands, Tel: (284) 494-3701 Ext.2008 and Ext . 2009 : Fax: (284) 494-5676

WebPage designed & maintained by www.bviguide.com