The European Union has confirmed the British Virgin Islands is a fully compliant jurisdiction for tax purposes.
The European Council has undertaken a review of worldwide governance and announced the British Virgin Islands has been moved to the European Union's tax 'white list'.
In March 2018 the BVI was included on the EU's 'grey list' of cooperative tax jurisdictions which showed whilst the BVI was actively engaged with the EU, the latter required further action. In the intervening period the BVI has passed the Economic Substance (Companies and Limited Partnerships) Act 2018 which requires certain entities to demonstrate economic substance in the BVI. To complement this legislation the BVI International Tax Authority issued rules of interpretation and an updated version, published on 10 February 2020, now includes a number of examples to better assist the classification of entities.
The BVI has also passed amendments to the BVI Securities and Investment Business Act to increase the regulatory oversight of closed-ended investment funds.
Each of these steps further establishes the BVI's position as an internationally respected financial centre, committed to good corporate and tax governance, effective regulation and enforcement measures to combat money laundering and other financial crimes.
ILS World chairman, Chris Eaton said: "We are proud to have been operating in the BVI for more than 25 years and it has built a strong reputation as an international business and finance centre. This important new development shows a commitment to exceeding international standards and is a further example of why the BVI is the jurisdiction of choice for so many."