BVI Business Companies generate US$14bn yearly in taxes for governments worldwide

– US$3.5bn in tax revenues for the British government

The British Virgin Islands Business Companies contribute US$3.5bn in tax revenues for the British government, states a new independent report launched today, March 29.

‘Beyond globalisation: The British Virgin Islands contribution to global prosperity in an uncertain world’ revealed that the BVI Business Companies also support 134,000 jobs in the United Kingdom and facilitates an estimated $1.4 trillion in cross-border trade and investment.

In the UK, BVI companies hold an estimated US$153bn in assets, with 134,000 jobs created by investment mediated through the BVI and US$3.5bn of tax revenues generated for the UK government.

The report, based on quantitative and qualitative research of firms operating in the BVI, underscores the positive role the territory plays in the global economy, recognising the BVI as a “globally respected international business and finance centre.”

Presently, there are around 400,000 active BVI Business Companies, with the majority from Asia at 57 percent and just 16 per cent from Europe and North America.

Additionally, the investment from BVI Business Companies supports around 2.3 million jobs globally and generates US$14bn each year in taxes for governments worldwide.

BVI hosts the largest registry of international companies in the world which gives the territory significance in the global financial infrastructure. The central business in the territory is to incorporate companies and trusts that are financial holding companies; asset management companies; captive insurers; and the like.

Most registered companies undertake all of their financial activities outside of the BVI – funds  and transactions do not flow through the BVI, unlike in other offshore centres. While the territory provides administrative; audit; and legal services to international business companies, another key component of the economy.

Financial services in the BVI is a major contributor to the territory’s domestic economy.