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BVI Assembly Approves Payroll Tax

by Amanda Banks, Tax-News.com, London

11 January 2005

The Legislative Council of the British Virgin Islands has approved a new payroll tax, forming part of the jurisdiction’s tax reforms.

Moving the second reading of the bill last month, Deputy Chief Minister and Minister of Finance, Ronnie W. Skelton, stated that the new payroll tax will treat employees and businesses equally whilst ensuring that adequate tax revenue flows are maintained.

The payroll tax is included in new legislation introduced on January 1 which abolished the jurisdiction’s dual income tax system for domestic and foreign companies and eliminated the 15% local corporate tax.

Under the new system, employers pay 6% payroll tax, while small businesses (defined as those employing less than seven people and with a payroll of less than $150,000 per year), pay a 2% levy.

A comprehensive report in our Intelligence Report series giving background tax and residence information on many of the key offshore jurisdictions is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report4.asp

 

 






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