BVI FINANCE DEBUNKS TAX COMPETITION AND EXPLAINS PROFIT-SHIFTING
02/09/2022
How the British Virgin Islands disincentivises profit-shifting as world leaders move to endorse a global minimum corporate tax rate, is explained in this week’s BVI360° report, Debunking the myths: Tax competition, profit-shifting and avoidance.
BVI Finance CEO Elise Donovan stated, “This report outlines the BVI’s extensive network of tax treaties that makes it a tax-neutral jurisdiction, including being a member of the OECD’s global minimum corporate tax initiative which aims to disincentivise profit-shifting.”
She explained that over the years, advanced economies have focused on implementing a global minimum corporate tax to thwart what is often dubbed a "race to the bottom”, or the concept of companies strategically shifting their profits from high-tax to low-tax jurisdictions to lower their tax rates.
“In 2021, world leaders endorsed a global minimum corporate tax rate of at least 15 per cent to encourage companies to pay their fair share of taxes and to limit the benefits of companies’ profit-shifting without biasing where they invest,” stated CEO Donovan.
She further stated that this report debunks the myth of tax competition, highlighting the benefits for consumers, taxpayers and firms.
BVI Finance launched the BVI360° series to showcase the full picture of the BVI’s financial services industry, bringing to the fore the expertise, talent, and evolution of the BVI as a resilient and innovative financial centre and to debunk some of the myths about the jurisdiction.
BVI Finance commissioned the BVI360 series from the UK-based Pragmatic Advisory, an independent strategy and economics research consultancy firm based in the UK.
Earlier BVI360° report are available here.