British Virgin Islands to study feasibility of global minimum tax rate next month: premier

The islands, which are a British Overseas Territory, asked consulting firm KPMG to identify companies that would be subject to the rate, according to BVI Premier Natalio Wheatley. In an interview last week, he said KPMG’s results would be delivered in March.

“Once we have that information, we can determine whether it would be feasible for the Virgin Islands to go ahead and implement the [global minimum rate],” said Wheatley, who also serves as finance chief.

He arrived in Hong Kong on February 16 as part of an Asia-Pacific tour meant to demonstrate the territory’s commitment to the region. During his trip, which also included visits to Macau and Shenzhen, Wheatley met business leaders, industry stakeholders, and BVI students pursuing university degrees.

The global minimum tax rate dictates that multinational firms with annual revenue of €750 million (US$788 million) or more in at least two of the previous four years should be taxed at a rate of no lower than 15 per cent.

The BVI has been a tax haven because it has no corporate or capital gains taxes. Many businesses incorporate on the islands and transfer their profits there via intragroup transactions to minimise tax payments.