British Virgin Islands: Personal Taxation
Personal Income Tax
Income tax was abolished in 2006.
In 2004, the government announced that income tax for both companies and individuals would be abolished with effect from 2005, with the introduction of a payroll tax.
In January, 2005, the Legislative Council approved the new payroll tax.
The new payroll tax is levied at a rate of 14%, 8% of which is paid by the employer and the remainder by the employee, although the first US$10,000 of income is tax free. The contribution for small business, defined as those employing less than seven people and with a payroll of less than US$150,000 per year, is 10%.