BVI Planning Tax Regime Overhaul In 2017
by Mike Godfrey, Lowtax.net, Washington
15 February, 2016
The British Virgin Islands Government has announced plans to make substantial changes to the tax regime next year and to strengthen enforcement efforts this year.
For 2016, the Budget announces three key changes. Import duties will be newly calculated on a good's Cost, Insurance, and Freight (CIF) value, rather than its Free On Board (FOB) value. The fee structures for work permits will be reviewed, to bring the fees more into line with those of other UK Overseas Territories, and the tax authority, with new powers, will take a more aggressive approach to the collection of current taxes, fees, and arrears.
In 2017, the BVI intends to adopt a "modern, more progressive payroll tax system" and review and revise the current stamp duty regime.
The Government has also said it intends to introduce an environmental levy and to harmonize the existing fee and tax structure for hotels and yachts. Further, work will begin on a new Patents and Copyrights Act to strengthen and completely modernize the BVI's intellectual property laws. This follows the implementation of a new Trademarks Act.
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