Tax Information Exchange Agreement
Committed to complying with international standards, the Virgin Islands continues to expand its treaty network by not only negotiating and signing bilateral tax information exchange agreements (TIEAs) but also committing to automatic exchange of information. Since 2002 the Virgin Islands has concluded TIEAs with 28 jurisdictions namely, the United States, United Kingdom, France, Australia, Germany, Czech Republic, Faroe Islands, Finland, Greenland, Iceland, Sweden, Norway, Denmark, South Korea, The Netherlands, Aruba, St. Maarten, Curacao, Portugal, Ireland, New Zealand, China, Canada, India, Guernsey, Poland, Japan and Isle of Man. With the extension of the Multilateral Convention on Mutual Administrative Assistance in Tax Matters (the “Convention”), the Virgin Islands is now able to exchange information upon request with more than 76 jurisdictions. For a complete list of the jurisdictions with which the Virgin Islands can exchange information, the International Tax Authority can be contacted at +1 284-468-4415. The website for the International Tax Authority can be found here.
The BVI has signed an Intergovernmental Agreement (“IGA”) with the United States in order to comply with the requirements of the Foreign Account Tax Compliance Acts (FACTA). Additionally, the Virgin Islands has signed an IGA with the United Kingdom to improve International Tax Compliance which means that Virgin Islands financial institutions will have to provide data on financial accounts held by its residents to the United Kingdom.
Additional information on US FATCA can be found here.
Multilateral Convention for Mutual Assistance in Tax Matters
The Convention was extended to the Virgin Islands by the United Kingdom and became effective on the 1st March 2014. The Convention was developed jointly by the Organisation for Economic Co-operation and Development (OECD) and the Council of Europe in 1988 and amended by Protocol in 2010. The Convention is a multilateral instrument which allows for all forms of tax cooperation to tackle tax evasion. More information on the Convention can be found on the OECD website.
Common Reporting Standards
The Virgin Islands was among the first countries to commit to the new standard for automatic exchange of information developed by the OECD in the form of the Common Reporting Standard (“CRS”). The Virgin Islands is one of the early adopters and has committed to begin the first exchange of financial account information automatically by 2017.