Beautiful Virgin Islands

Tuesday, Jun 03, 2025

OECD: BVI tax regime “not harmful”

OECD: BVI tax regime “not harmful”

The legal framework of the Virgin Islands, along with those of 11 other low- and no-tax jurisdictions, has been declared “not harmful” by the Organisation for Economic Cooperation and Development (OECD) Forum on Harmful Tax Practices.

Last week, the FHTP concluded its review of the jurisdictions and announced they were in compliance with the organisation’s Substantial Activities Standard, which requires that core income-generating activities for certain sectors must be conducted in the territory.

The announcement was another victory for the VI’s Economic Substance Act, which was rushed through the House of Assembly late last year in order to successfully keep off the European Union blacklist of non-cooperative
tax jurisdictions.

“We welcome the peer review by the OECD of our new substance requirements,” said Elise Donovan, CEO of BVI Finance. “It is a significant positive development which follows months of hard work from Neil Smith and the team to draft and enact legislation which meets relevant substance requirements and continues to demonstrate BVI’s value to the global economy.”

Starting in October 2019, the VI act will require entities engaged in certain business — and which are tax resident and incorporated in the VI — to report their activity to prove compliance with the act.

To provide guidance for companies, a draft Economic Substance Code was released earlier this year, and the final version is due out shortly, after input from industry professionals.

Next year, an annual OECD monitoring process will begin examining the VI and other jurisdictions to determine how well the measures are being implemented and enforced.

Other jurisdictions

Also included in the review were 11 other “no or only nominal tax” jurisdictions that agreed to the new substantial activities standard in November 2018, all of which introduced new legislation in an attempt to meet it.

These included Anguilla, the Bahamas, Bahrain, Barbados, Bermuda, the Cayman Islands, Guernsey, Isle of Man, Jersey and the Turks and Caicos Islands, which were deemed “not harmful” last month.

The last jurisdiction, the United Arab Emirates, was also found to be in line with the standard but with “one technical point outstanding.”

The UAE committed to make further legislative changes, and its law is now “in the process of being amended,” according to the OECD.

So far, the FHTP has reviewed 287 regimes, 59 of which have been deemed “not harmful.”

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Dutch government falls as far-right leader Wilders quits coalition
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
×