The British Virgin Islands (BVI) has been removed from the European Union’s (EU) roster of non-cooperative jurisdictions for tax purposes as of 18th October 2023. This progress reflects the BVI’s adherence to the international standards outlined by the OECD Global Forum concerning the exchange of information upon request.
Here’s the context: The BVI was initially added to the EU’s list of non-cooperative tax jurisdictions in February 2023. This inclusion followed the OECD Global Forum’s second-round peer review report published on 9th November 2022, rating the BVI as ‘partially compliant.’ This rating automatically led to the BVI’s inclusion in the list, despite not considering legislative changes implemented in 2022. In response, the BVI Government requested a supplementary review by the OECD Global Forum, aiming to accurately depict the current legislative status. This supplementary review was granted on 6th April 2023.
The Removal: The EU Council cited the BVI has taken action and amended it’s information exchange framework, thus, BVI would undergo reassessment in line with the OECD standard.
“British Virgin Islands was removed from the list as it has amended its framework on exchange of information on request (criterion 1.2) and will be reassessed in accordance with the OECD standard. Pending this reassessment this jurisdiction has been included in Annex II.”
While awaiting reassessment, the BVI has been transferred to the EU’s roster of cooperating countries with pending commitments on 17th October 2023
The British Virgin Islands (BVI), one of the world’s premier and trusted global financial centers, is dedicated to upholding the best practices within the financial industry. To solidify and enhance its regulatory frameworks, the BVI has actively introduced various legislative amendments.
Among these measures are the BVI Business Companies (Amendment) Act, 2022, and the BVI Business Companies (Amendment) Regulations, 2022. These legislative changes were implemented with the aim of refining the BVI’s regulatory structures governing businesses.
These alterations, effective from January 1st, 2023, reflect the jurisdiction’s commitment to adapting and evolving in line with international standards and best practices in the financial sector.
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