BVI Signed 17th TIEA with People's Republic of China (PRC)

The Government of the British Virgin Islands ("BVI") signed a Tax Information Exchange Agreement ("TIEA") with the People’s Republic of China ("PRC") on 7th December 2009.

The TIEA reflects both Governments?shared commitment to implement international principles of transparency and effective exchange of information. The TIEA will allow exchange of information by request on tax matters in accordance with the procedures agreed. It does not cover indirect taxation and does not apply to Hong Kong, Macau or Taiwan. It is anticipated that the TIEA will have effect from the BVI 2011-12 tax year. No restrictive tax measures will be applied to the BVI companies for so long as the TIEA is in force and it has been agreed that there will be no "fishing expeditions".

The BVI is the first significant offshore financial centre to enter into such an agreement with the PRC. It was able to negotiate certain concessions with the PRC government which will assist in developing further investment into the PRC through the BVI vehicles and preserve the position of existing investments.

The PRC and the BVI are already on the list of jurisdictions recognised by the Organisation for Economic Cooperation and Development ("OECD") as having substantially implemented the principles of transparency and exchange of information.

To date the BVI has already signed 17 TIEAs with the following jurisdictions:

People’s Republic of China, Ireland, the Kingdom of the Netherlands, the Netherland Antilles and Aruba, the United States, the United Kingdom, Australia, New Zealand, France and the Nordic Alliance including Sweden, Norway, Finland, Denmark, Iceland, The Faroes and Greenland.

Please refer to the BVI Press Release for the 17th TIEA signed with the People’s Republic of China on the 7th December 2009.
(http://www.bviifc.gov.vg/Press/PressReleases/BVIsigns17thTIEAwithChina/tabid/216/Default.aspx)