BVI offshore corporations pay no corporate tax, capital gains tax, estate tax, withholding tax or income tax. All an offshore company pays in the BVI is an annual fee which is paid to the relevant government authorities. For this reason the BVI can be regarded as a pure offshore tax haven.
In addition, BVI imposes no taxes on offshore bank accounts. This makes the BVI an ideal jurisdiction in which to set up offshore bank accounts.
The development of BVI as a tax haven started in 1984 when the BVI authorities enacted the International Business Companies Act. The International Business Companies Act introduced a new legislation that allowed the formation of offshore companies that were exempt from local taxes. Since then, the BVI have become one of the most important tax havens in the world. This makes the BVI the largest registry of international companies in the world and, thus, they hold an important place in the global financial infrastructure. Like in other tax havens, most of the registered BVI companies undertake all of their financial activities outside of the BVI. Therefore, money and transactions do not flow through the BVI china company formation.
The BVI as a tax haven also provide confidentiality and privacy to the beneficial owners and directors of offshore business corporations through the BVI’s offshore business corporations’ act. The names of the offshore company’s shareholders, directors and the company’s minutes of meetings and resolution documents are not filed with the Registrar of Companies. Information about the beneficial owners is not made public. This means that this information does not become public. Such information is only known to the registered agent of the company who is also responsible for keeping the information. The offshore business legislation provides further privacy by allowing offshore corporations in the BVI to be incorporated using nominee directors and shareholders hong kong company formation.