REPORT: BVI companies generate $14B in tax revenues globally
A UK-based research and consultancy firm, Pragmatix Advisory, has found that the BVI’s financial services sector facilitates an estimated $1.4 trillion in cross-border trade and investment globally.
According to its report, ‘Beyond globalisation: The British Virgin Islands contribution to global prosperity in an uncertain world’, launched yesterday, investment mediated by BVI business companies supports around 2.3 million jobs globally and generates an extra US$14 billion each year in taxes for governments worldwide.
The territory’s financial services sector hosts a little more than 375,000 active BVI business companies with roughly 57 per cent originating in Asia and 16 per cent from Europe and North America.
BVI companies hold an estimated US$153 billion in assets in the UK alone; with 134,000 jobs created by investment mediated through the BVI and US$3.5 billion of tax revenues generated for the British government.
Responding to the findings of the report, CEO of BVI Finance, Elise Donovan said: “This report provides clear evidence of the role the BVI plays in facilitating investment, stimulating economic growth, creating jobs and providing governments with much needed tax revenues. With this research, we can continue to break down some of the myths and educate more people on true role the BVI plays as a respected and valued international financial and business centre and a key intermediary in the global economy.”
“Whatever form the next evolution of globalisation takes, international financial centres like the BVI will remain vital cogs in boosting the global economy by enabling investment, facilitating sophisticated transactions, and enabling a more efficient global marketplace,” she added.