Comments from the Prime Minister and the Minister of Finance of the BVI on the G7 communiqué
The British Virgin Islands (BVI) have followed the initiative of the Organization for Economic Co-operation and Development (OECD) on âTax Challenges Arising from Digitizationâ and noted with interest the 5e CommuniquÃ© of June 2021 of the communiquÃ© of the finance ministers and central bank governors of the G7 committing to a global minimum tax of at least 15%.
Speaking on behalf of the Government of the Virgin Islands in responding to the communiquÃ©, Prime Minister and Minister of Finance the Honorable Andrew A. Fahie said: âAs a small economy, I fully understand that governments need to focus on ways to increase income, especially in a post-pandemic era. We all understand this. However, it is important to remember that the commitment of the G20 / OECD Inclusive Framework is to provide a âconsensus solution‘to the challenges posed by digitization. Therefore, we look forward to the July meeting of G20 finance ministers and central bank governors. “
The ongoing OECD Digitization Initiative is a two-pronged proposal to harmonize (a) a unified approach to the allocation of tax rights between countries where digital activities take place and, (b) a minimum tax global on all types of businesses.
As negotiations continue, the BVI would have liked greater recognition of the positive contributions of international financial centers to the global economy.
Prime Minister Fahie said: âEconomic research conducted on behalf of BVI shows that international financial centers have a positive role to play in the global economy and actually help to increase tax revenues for developing economies by billions per year. , support millions of jobs and enable significant commerce across the globe. “
âAs we continue to monitor these developments, BVI remains confident in the attractiveness of its brand to international customers and wishes to continue supporting our customers while maintaining and developing our reputation as a responsible international financial center. We will continue to follow international initiatives and participate in discussions with the OECD, as a recognized standards body in this area.