BVI removed from EU ‘non-cooperative’ list

The BVI has been removed from the EU list of non-cooperative tax jurisdictions (Annex I), the government announced yesterday. The move comes after a meeting of the European Union’s (EU’s) Economic and Financial Affairs Council (ECOFIN).

The BVI was added to the list for the first time in February 2023 after the EU Council found that the territory was not sufficiently in compliance with the OECD standard on exchange of information on request (criterion 1.2).

The EU Council, in a statement issued yesterday, said the territory was removed now that it has amended its framework on exchange of information on request (criterion 1.2) and will be reassessed in accordance with the OECD standard.

While the reassessment is pending, the BVI has been included in the state of play document (Annex II) which includes jurisdictions committed to implementing reforms, the EU Council said.

The government said the latest development recognises various legislative changes made recently, including BVI Business Companies Amendment Act 2022, and BVI Business Amendment Regulations 2022 as well as those which came into force on 1 January 2023.

These changes were implemented to meet requirements set out by the Organisation for Economic Co-operation and Development’s (OECD) Global Forum on Transparency and Exchange of Information for Tax Purposes as part of its Peer Review Process.

Financial Services Minister, Lorna Smith said in response: “We welcome the announcement that the BVI has been removed from Annex I of the EU list, which reflects the current state of play in the BVI. As a world-class international financial centre, the BVI is committed to maintaining the highest international standards on transparency and regulation.”

The government previously described the BVI’s placement on the list of non-cooperative tax jurisdictions as a ‘formality’ and ‘a matter of process’ after it noted that key legislative developments were not recognised in the OECD Peer Review rating given in November 2022.

That review moved the BVI from ‘largely compliant’ to ‘partially compliant’. A ‘largely compliant’ rating is one of the criteria that determines the “EU List of Non-cooperative Jurisdictions for Tax Purposes” (EU List).

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