The commissioned report, “Creating Value: the BVI’s Global Contribution”, found that the British Virgin Islands supports jobs, prosperity, and government revenues worldwide through trade and the facilitation of cross-border business. The investment mediated by the BVI as an international business and finance centre supports approximately 2.2 million jobs worldwide, with China and Hong Kong accounting for nearly two-fifths, and one-fifth in Europe. In terms of trade, the BVI supports 12,000 jobs in the US alone.

Analysis in the report reveals that the economic activity and incomes generated by 2.2 million jobs worldwide contributes over US$15 billion annually to government coffers worldwide. The scale of the BVI’s global contribution to investment and jobs sheds new light on the debate on its impact on the tax receipts of other nations. The BVI, through its ability to enable substantive trade and investment, plays a key role in global economic growth throughout the world.

FIVE KEY FINDINGS

The BVI maintains a balanced and sustainable economy.

  • Across our balanced economy, tourism accounts for one in four jobs, while the international business and finance centre jobs are one in ten. Half of BVI’s economic output derives from these two key sectors.
  • With a GDP of approximately US$32,500 per capita, BVI’s levels of prosperity are among the highest performers in the Caribbean and Latin America region.
  • BVI has maintained a sound fiscal position despite the impact of the global financial crisis, while it runs a surplus of around US$45 million on its trade account.

The BVI is home to a unique cluster of financial and professional services firms that form an ‘international business and finance centre’.

  • BVI is one of the world’s largest centres for the incorporation of companies – especially those created to facilitate cross-border trade and investment, and is home to a cluster of associated specialist financial, legal and accounting firms with clients from across the globe.
  • The international business and finance centre employs 2,200 people directly and supports a further 3,000 jobs. Approximately US$330 million of gross value added is generated by this economic pillar, which accounts for three-fifths of government revenues.
  • Over two-thirds of all jobs in the centre are held by BVIslanders and Belongers.

The ‘BVI Business Company’ is a widely used and dependable vehicle to facilitate cross - border trade, investment, and business.

  • There are approximately 417,000 active BVI Business Companies, with approximately two-fifths of these businesses originating in Asia while use by clients from ‘G7’ countries is less common, accounting for less than one-fifth. The assets held by these vehicles have an estimated worldwide value of US$1½ trillion - approximately two per cent of global gross domestic product.
  • BVI is home to part of the group structure of over 140 major businesses listed on the London, New York or Hong Kong main stock exchanges.
  • The important role of BVI Business Companies in international investment flows is evident from data on foreign direct investment. According to the United Nations, BVI was the ninth largest recipient of foreign direct investment, and the seventh largest source of outward flows in 2015.

The BVI often exceeds international standards.

  • BVI is not a tax haven. It has no banking secrecy rules and compares well against many other jurisdictions on international standards for transparency, tax information exchange, anti-money laundering and measures to combat the financing of terrorism.
  • BVI is ‘tax neutral’ and is not a centre for corporate profit shifting. While a company may be is incorporated in BVI, this does not preclude it from being liable for full taxation in other jurisdictions.
  • The territory has responded quickly and constructively to international developments seeking to improve transparency and clamp down on criminality, including tax evasion.

Through its direct employment, trade and, most importantly, facilitation of cross-border business, BVI supports jobs, prosperity, and government revenues worldwide.

  • BVI provides jobs and incomes to 5,500 people from countries across the wider-Caribbean. The BVI further supports an additional12,000 jobs in the United States through its imports.
  • Investment mediated by BVI supports around 2.2 million jobs worldwide, with China and Hong Kong accounting for nearly two-fifths of them – and one-fifth in Europe.
  • The scale of BVI’s global contribution to investment and jobs sheds a new light on the debate around its impact on the tax receipts of other nations. BVI is a substantial net benefit to governments worldwide.