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The British Virgin Islands (BVI), a long-standing jurisdiction for company incorporations, particularly among firms from Hong Kong and mainland China, is considering the feasibility of implementing a global minimum tax rate. The government has enlisted consulting firm KPMG to assess the impact of such a move, with findings expected next month, Premier and Finance Minister Natalio Wheatley confirmed.

The global minimum tax, set at 15 per cent, applies to multinational corporations generating at least €750 million (US$788 million) in annual revenue over two of the previous four years. Under international tax agreements, jurisdictions failing to impose the requisite tax rate may see other countries applying top-up levies on corporations operating within their borders. More than 130 jurisdictions, including the BVI and Hong Kong, have endorsed the initiative.

“Once we receive KPMG’s analysis, we will be in a position to determine whether adopting the global minimum tax is a viable course of action for the Virgin Islands,” Wheatley said.

The Premier arrived in Hong Kong on 16 February as part of an Asia-Pacific tour aimed at reinforcing the territory’s engagement with key financial markets. His itinerary included stops in Macau and Shenzhen, where he met with business leaders, industry representatives, and BVI students pursuing higher education in the region.

The BVI, a British Overseas Territory, has long been a preferred destination for company registrations due to its tax-neutral status, offering no corporate or capital gains taxes. The territory remains a major player in global finance, with approximately 375,000 active companies incorporated within its jurisdiction. Nearly 44 per cent of these are linked to Hong Kong, Macau, and mainland China, according to official figures.

The UK-based advocacy group Tax Justice Network ranked the BVI as the world’s leading tax haven as of October 2024. The group reported that nearly 2.9 per cent of multinational corporate financial activity in 2024 either originated from or flowed through the BVI.

Despite growing international scrutiny and competition, particularly from Hong Kong, Wheatley expressed confidence in the BVI’s enduring appeal to global investors. Hong Kong recently introduced regulatory reforms aimed at simplifying the redomiciliation of overseas companies, positioning itself as an alternative jurisdiction for incorporation. However, Wheatley emphasised the BVI’s well-established legal framework, experienced financial services sector, and streamlined incorporation processes.

“In the British Virgin Islands, a company can be registered within 24 hours while maintaining full compliance with international regulatory standards,” he said. “There is no need to shift from a jurisdiction that continues to meet business needs effectively.”

Meanwhile, the UK government has recommended expanding access to beneficial ownership information in the BVI beyond law enforcement agencies to parties with “legitimate purposes.” The BVI government is conducting consultations to define what constitutes a legitimate purpose, with a decision expected by June.

“We value our longstanding relationships with stakeholders in mainland China, Hong Kong, and Macau and will continue fostering an environment that supports business growth while adhering to international obligations,” Wheatley said.

The territory remains focused on balancing its economic interests with evolving global financial standards.

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UNAIDS Executive Director Winnie Byanyima warns that the recent U.S. decision to halt foreign aid could lead to a sixfold increase in new HIV infections by 2029, potentially resulting in millions of deaths and the emergence of more resistant strains of the virus.

The U.S. administration’s 90-day suspension of foreign assistance, initiated by President Donald Trump as part of an “America First” policy, has disrupted numerous global health initiatives. This pause affects programs funded by the President’s Emergency Plan for AIDS Relief (PEPFAR), a cornerstone in the global fight against HIV/AIDS.

Byanyima stressed the gravity of the situation, stating that without U.S. support, projections indicate a significant surge in HIV cases and related fatalities. She urged the U.S. government to reconsider its stance, highlighting the potential global health crisis that could ensue.

The aid freeze has already led to the closure of several organisations reliant on PEPFAR funding, particularly in Africa. The United Nations AIDS program reported that many such entities have ceased operations due to the funding halt and a lack of clarity regarding exemptions.

In response to the suspension, advocacy groups have taken legal action against the administration. Public Citizen, a liberal-leaning organization, filed a lawsuit challenging the legality of the aid freeze, arguing that it endangers lives worldwide. The lawsuit represents organisations severely impacted by the funding halt, including those providing healthcare and humanitarian assistance.

The U.S. State Department, led by Secretary of State Marco Rubio, has defended the pause, asserting that it is necessary to review foreign aid spending in alignment with the administration’s policies. However, critics warn that this move could damage the U.S.’s reliability as a global partner and potentially push aid-receiving countries towards rivals like China.

The situation remains fluid, with global health experts and humanitarian organisations closely monitoring the developments. The potential resurgence of HIV/AIDS underscores the critical importance of sustained international support and the far-reaching consequences of policy decisions on global health initiatives.

Cuba has taken a bold step onto the global stage by joining BRICS as a partner country, a move that could shift economic and political dynamics in Latin America and beyond. This status, granted following the 16th BRICS Summit in Kazan, Russia, in October 2024, allows Cuba to engage with the group’s initiatives and benefit from its economic influence without holding full membership. The decision underscores BRICS’ expanding reach as it seeks to counterbalance Western financial institutions and foster stronger ties among developing nations.

Cuba was among 13 nations invited to become BRICS partner countries, signalling the bloc’s continued efforts to reshape global economic structures. While not yet a full member, Cuba’s closer alignment with BRICS could bring significant financial relief by opening avenues for investment and trade. The group’s economic powerhouses—China, India, Brazil, Russia, and South Africa—could provide much-needed capital to revitalise Cuba’s struggling economy, potentially helping the island navigate long-standing US sanctions.

One of the most immediate benefits for Cuba would be increased trade opportunities. With major BRICS economies looking to expand their influence, Cuba stands to gain from enhanced cooperation in key sectors such as energy, technology, and agriculture. China and Russia, already close allies of Havana, are expected to deepen their economic engagement, potentially reducing Cuba’s dependence on traditional trading partners. Additionally, BRICS’ efforts to develop alternative financial systems independent of the US dollar could provide Cuba with new mechanisms to bypass US-imposed restrictions.

For BRICS, Cuba’s inclusion strengthens its foothold in Latin America. With Brazil already a member, bringing Cuba into the fold reinforces the bloc’s presence in the region and challenges the influence of Western institutions such as the International Monetary Fund and World Bank. Cuba’s longstanding role in promoting South-South cooperation aligns with BRICS’ mission to offer developing nations an alternative to Western-led economic structures.

However, Cuba’s partnership with BRICS is not without risks. Increased economic ties with the bloc could escalate tensions with the United States, which has maintained a decades-long embargo against Cuba. Washington may view this development as a strategic challenge, potentially leading to stricter sanctions or diplomatic countermeasures. Such actions could complicate Cuba’s economic recovery, particularly if the anticipated benefits of BRICS integration take time to materialise.

Domestically, BRICS engagement could push Cuba towards economic reforms. While Havana is unlikely to abandon its socialist model, the need to attract foreign investment may prompt shifts towards market-friendly policies, similar to those adopted by China and Vietnam. BRICS-backed projects could modernise Cuba’s infrastructure, boost its tourism industry, and unlock the potential of its key mineral exports, including nickel and cobalt. The country also possesses offshore oil reserves, though exploration has so far been limited.

Despite the opportunities, challenges remain. Unlike resource-rich nations such as Saudi Arabia or the UAE, which were among those invited to join BRICS as full members, Cuba’s economic contributions to the bloc may be limited. The island continues to grapple with inflation, supply shortages, and structural inefficiencies, raising questions about how effectively it can integrate into BRICS initiatives.

Ultimately, Cuba’s engagement with BRICS represents a strategic gamble—one that could provide economic relief and bolster the bloc’s influence in Latin America but also provoke resistance from the US and its allies. Success will depend on Cuba’s ability to leverage its new partnerships while navigating the geopolitical complexities that come with them.