The British Virgin Islands (BVI) are a British overseas territory situated in the Caribbean Sea.
Tourism and offshore financial services are the most important sectors of the British Virgin Islands' economy: each generates roughly half the national income.
There are 6 banks operating in the British Virgin Islands.
Since 1959, the official currency of the British Virgin Islands is the United States dollar (USD) which is also used by the United States Virgin Islands.
Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.
British Virgin Islands signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):
There are 3 ways for jusrisdictions to exchange information on tax matters:
Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.
Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.
Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.
British Virgin Islands signed TIEAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):
There are also several agreements between British Virgin Islands and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 01 January 2013 of signing the agreement is given in brackets):
British Virgin Islands signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.
Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).
|FATCA Status in the British Virgin Islands|
|IGA in effect since 30 June 2014, Model 1|
British Virgin Islands has FATCA agreement with the U.S. in effect since 30 June 2014 (Intergovernmental Agreement Model 1). Financial institutions operating in British Virgin Islands are required to identify U.S. taxpayers by January 1, 2017 and to report the information for 2017 and the subsequent years. The agreement is non-reciprocal: the British Virgin Islands' financial accounts hold in U.S. financial institutions will not be reported to the British Virgin Islands' authorities.
|Maximum Protected Amount|
Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.
From a depositor's point of view it is important to know:
There is no deposit guarantee scheme in British Virgin Islands.
Financial Services Commission
|Number of Banks|
Currently there are 6 credit institutions operating in British Virgin Islands.