The European Union added the British Virgin Islands (BVI) to the black list of tax jurisdictions
BVI is short for the British Virgin Islands, which are British dependent territories in the Caribbean. The BVI is a popular jurisdiction for international business and financial services due to its stable political and economic environment, well-developed legal system and favorable tax regime.
The BVI has modern and flexible corporate laws that allow for the creation of a wide range of corporate entities, including companies, limited partnerships and trusts. The BVI is known for its International Business Companies (IBCs), which are often used to protect assets, hold investments and conduct international trade.
On February 14, the European Union updated the list of unfriendly EU tax jurisdictions, adding Russia, Costa Rica, the Marshall Islands and the British Virgin Islands to it.
Being on the EU blacklist means that a certain jurisdiction does not meet the criteria of tax transparency or fair taxation.
The February update is notable for including not only the Russian Federation, but also the British Virgin Islands (BVI), a world-famous offshore jurisdiction.
What is the EU blacklist and why did the BVI get there?
The tax blacklist of EU jurisdictions was created in December 2017. It is part of the BEPS fight against base erosion and profit shifting.
The list is drawn up twice a year at the EU level, but potential restrictive measures against these countries are adopted by EU member states separately. The list is also taken into account by the European Commission when carrying out EU financial and investment operations.
Comply Legal Team ready to advise you on any issues related to EU tax jurisdictions.