ARTICLE · 29 NOVEMBER 2000

Zero Tax Or Low Tax ? What´s Your Preference

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British Virgin IslandsWealth Management

The British Virgin Islands are well known for International Business Companies for which one of the main features is that they offer zero taxation. However the Income Taxes Ordinance, Cap. 206 of the British Virgin Islands contains provisions whereby companies registered under the Companies Act, Cap. 285 can be taxed at the very low rate of 1%.

Following is a discussion of the procedures for incorporation and the basic features of the two options.

Zero Tax Option - Companies Registered Under the International Business Companies Ordinance, Cap 291.

The International Business Companies Ordinance was passed in August 1984. Since then it has been one of the major factors contributing to the success of the BVI as an offshore financial centre.

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