Comparative Guides

Welcome to Mondaq Comparative Guides - your comparative global Q&A guide.

Our Comparative Guides provide an overview of some of the key points of law and practice and allow you to compare regulatory environments and laws across multiple jurisdictions.

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4. Results: Answers
Alternative Investment Funds
8.
Tax
8.1
How are alternative investment funds treated for tax purposes in your jurisdiction?
British Virgin Islands

Answer ... Provided that it has no employees in the British Virgin Islands and it does not purchase property situated in the British Virgin Islands, an alternative investment fund (AIF) formed in the British Virgin Islands will not be subject to tax in the British Virgin Islands other than annual filing and registration, recognition or approval fees (as applicable).

For more information about this answer please contact: Ian Montgomery from Collas Crill
8.2
How are alternative investment fund managers and advisers treated for tax purposes in your jurisdiction?
British Virgin Islands

Answer ... Provided that it has no employees in the British Virgin Islands and does not purchase property situated in the British Virgin Islands, an AIF formed in the British Virgin Islands will not be subject to tax in the British Virgin Islands other than annual filing and registration, recognition or approval fees (as applicable). If a fund manager employs staff in the British Virgin Islands to comply with the requirements of the Economic Substance Act, it will be subject to payroll taxes. Most investment managers will outsource services and will not directly employ staff in the British Virgin Islands.

For more information about this answer please contact: Ian Montgomery from Collas Crill
8.3
How are alternative investment fund investors treated for tax purposes in your jurisdiction?
British Virgin Islands

Answer ... There are no BVI taxes charged on distributions or redemption payments made to investors. Investors into BVI funds will be charged tax on any amounts received in accordance with the tax rules in the jurisdiction in which they are tax resident.

For more information about this answer please contact: Ian Montgomery from Collas Crill
8.4
What effect do international laws such as the US Foreign Account Tax Compliance Act and international standards such as the Common Reporting Standard have in your jurisdiction?
British Virgin Islands

Answer ... The British Virgin Islands has passed legislation to implement the Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS). All AIFs must register for FATCA and CRS and report annually. The information is then shared by the International Tax Authority with the Internal Revenue Service or the tax authorities in the relevant reportable jurisdictions (as applicable).

For more information about this answer please contact: Ian Montgomery from Collas Crill
8.5
What preferred tax strategies are typically adopted in the alternative investment fund context?
British Virgin Islands

Answer ... Given the simplicity of the BVI tax regime, there is no need for complex tax strategies to be adopted with regard to BVI tax.

For more information about this answer please contact: Ian Montgomery from Collas Crill
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Alternative Investment Funds