Tax and Accounting Regulations
A coherent offshore planning tax strategy is essential to maximize the effectiveness of offshore companies. Eltoma can assist by structuring the most tax efficient strategy to satisfy your requirements. Eltoma will guide you as to which jurisdictions offer the best tax structure by identifying the types of tax payable as well as applicable exemptions and incentives. Eltoma will provide tax planning advice that will identify which is the most favourable, tax efficient jurisdiction in which to incorporate.
The following information provides an overview of the tax and accounting regulations in British Virgin Islands.
The following are exempt from tax:
- Capital Gains.
- Net Worth.
- Capital Transfers.
- Interest – Although there is no tax on interest the BVI has implemented the EU savings directive which means that agents making interest payments to residents of an EU member state will automatically exchange information with the relevant member states tax authority with respect to the identity of the beneficial owner and the payment.
International Aspects of Taxation:
Double Taxation Treaties – There are no Double Taxation Treaties in place.
Annual Reporting Requirements:
There is no requirement to file audited accounts with the authorities; a company is required to keep financial records which reflect the financial position of the company.
CJEU: Defines Key Definitions for Tax & Beneficial Ownership Purposes
Last month, the Court of Justice of the European Union (CJEU) issued a series of important judgments dealing with tax avoidance and beneficial ownership in the context of the EU Parent-Subsidiary Directive (PSD) and the Interest and Royalties Directive (IRD).