As a world-famous offshore financial center, BVI Islands has attracted the attention of businessmen all over the world due to its relaxed tax environment and simple and fast company registration process. If the registered BVI company is used for offshore operations, the BVI government does not need to declare taxes on offshore companies, so it does not need to do any auditing or accounting reports.
BVI is known as a "tax haven". What taxes can be avoided?
1. BVI levies income tax at the rate of 0, regardless of companies or individuals. The BVI Business Companies Act 2004 applies to (a) all BVI business companies; (b) Dividends, interest, rent, copyright fees and compensation paid by the company; (c) Capital gains related to any shares and liabilities of the commercial company are exempted.
2. The equity transfer of BVI Company is not subject to stamp duty.
3. BVI does not levy any income tax and capital gains tax on the restructuring of the company group.
4. BVI companies have no withholding tax on interest or dividends. If they are already EU natural person residents, there is a 20% withholding tax on interest income.
BVI companies registered in China are basically shell companies with no field operations, so they basically do not pay taxes. They do not need to make accounts and tax returns every year, and only need to pay a very small amount of annual audit fees.
(Source: Seagoing Notebook)
