BVI recent changes

According to the last report of the Organization for Economic Cooperation and Development (OECD) the British Virgin Islands have done serious work within the framework of increasing tax visibility and exchanging of information in accordance with international standards.

Among others agents of the BVI have tightened the requirements about client’s information: the requirements to reveal the owner and provide the documents regarding his identity are a compulsive rule. In case company issues bearer shares, the register of beneficial owners of those shares must be kept in the special accredited depositaries. Change of ownership could be done until the information put to the register. In fact the bearer share ceased to exist.

The requirement to provide the information about type of business and business major region is also a stringent rule.

Also the reporting requirement was increased. The owners must keep verifiable financial reports for the period of at least 5 years; meanwhile the law does not prescribe the format and record-keeping requirements.

By special law the BVI received the right to reveal the information within the framework of the Agreement on the exchange of tax information. Such contracts have already been signed with the Czech Republic, Germany, Portugal, Ireland, Netherlands, France, Denmark, Finland, Norway, Sweden, Iceland, Greenland, New Zealand, Australia, Britain, the USA and some others.

According to the OECD report, more or less effectively exchange is currently in progress with the European Union, but the BVI are doing everything possible for full integration into the world economic community. OECD experts assess their work as quite successful and a plan proposed by the Organization.

Walton Consultants DMCC