The British Virgin Islands (BVI) enables global investment and trade which supports more than two million jobs worldwide according to a detailed report published today.
The report, titled Creating Value: The BVI’s Global Contribution will be launched today at a reception held at the BVI International Arbitration Centre.
It was undertaken by Capital Economics, an independent economics consultancy firm, and analyses the significant global economic contribution of the BVI. It finds that the BVI mediates over US$1.5 trillion of cross-border investment flows, the equivalent to two percent of global GDP.
The first of its kind report also finds that over US$15 billion of tax revenues are generated annually for governments around the world, via investment mediated by the BVI and the resulting economic activity. The UK (US$3.9 billion), the EU excluding UK (US$4.2 billion) and China and Hong Kong (US$2.1 billion) are the largest beneficiaries of this tax generation.
Coupled with the jobs it supports, the tax generation marks the BVI as a substantial net benefit to governments worldwide.
Commenting, Lorna Smith, OBE, Interim Executive Director of BVI Finance said:
“The results of this study clearly demonstrate the significant contribution the BVI makes to the global economy.
Not only does the BVI enable cross border trade and investment, it also supports millions of jobs and generates substantial tax receipts for governments globally. This brings tangible benefits to the lives of employees, voters, families and businesspeople around the world.
The report is unequivocal: contrary to some accusations, the BVI is a sound and reliable centre which has worked harder than many bigger nations to meet international standards, and is not a tax haven.
This independent and authoritative report is equally clear in stating that the BVI is not a centre for corporate profit shifting. This helps clarify once and for all some of the inaccuracies and misunderstanding about what the BVI is and the valuable role it plays in the global economy.”
Commenting, Mark Pragnell, Head of Commissioned Projects at Capital Economics and the report’s author said:
“The BVI provides the legal structures that allow companies, institutions and individuals to safely and efficiently carry out their business and make investments across international borders.
The ‘BVI Business Company’ is a widely used and dependable vehicle to facilitate cross-border trade, investment and business. Over 140 major businesses listed on the London, New York or Hong Kong main stock exchanges use BVI vehicles to support their international investment activities. Similarly, major international development banks, such as the World Bank’s International Finance Corporation, use BVI Business Companies to help fund vital projects.
“Our report shows that the BVI is a global powerhouse for cross-border investment equating to a conservatively estimated $1.5 trillion across its 417,000 active BVI Business Companies.”
The full report can be downloaded at www.bviglobalimpact.com.