The BVI will not be placed on the European Union’s blacklist of non-compliant tax haven jurisdictions.
Premier Andrew Fahie made that announcement on Tuesday in a report to the House of Assembly.
He said: “The European Union has announced today that it recognizes the BVI as compliant with its fair taxation principles as well as being a cooperative jurisdiction. The BVI has been working closely with the EU to meet its requirements regarding fair taxation.”
“This milestone has been achieved due to the hard work and tireless efforts of the previous government administration and your new government,” the Premier added
He said the outcome was not surprising considering that the BVI “has always been a jurisdiction that keeps pace with international standards”.
At the beginning of the year, the Economic Substance (Companies and Limited Partnerships) came into effect. The Act, which was implemented under an NDP government, was a requirement for the BVI to keep off the EU’s Blacklist.
The crux of the legislation mandates that offshore financial services companies registered in the British Virgin Islands are expected to physically set up office spaces in the territory if they are to continue doing business with/through the BVI.
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