Taxation and payroll

Payroll services to power your business

Effective 1 January 2005, the Government of the British Virgin Islands, by virtue of the introduction of the Payroll Taxes Act, 2004, effectively abolished both personal and corporate income tax in the Territory. Further, beginning 1 January 2005, all companies became subject to a payroll tax equating to 6% or 2% of all salaries, wages, and benefits paid to employees residing in the British Virgin Islands, while employees themselves were subject to a payroll tax equating to 8% of all salaries, wages, and benefits paid to them.

Where management wishes to focus their attention on the areas of greatest risk within their organisation, it may prove worthwhile for them to outsource this payroll function. Baker Tilly can assist companies, with its weekly, fortnightly, or monthly payroll preparation and statutory compliance with the Payroll Taxes Act, 2004 and The Social Security (Contributions) (Amendment) Regulations, 2005. Our basic services include:

• Preparation and maintenance of all corporate payroll records, including weekly, fortnightly, or monthly payroll slips and monthly and annual statutory payroll returns (payroll tax and social security); namely, monthly Payroll Tax Form P6 and annual P1 and P7 Forms;
• Preparation of encrypted payment files for banks, if necessary, to facilitate the electronic payroll payment process for all employees;
• Filing of all monthly and annual statutory payroll returns (payroll tax and social security); and
• Arranging for settlement of all monthly statutory payroll liabilities by the due dates.

In addition to the above services, we can also perform the annual filing of Payroll Tax Form P11.

We acknowledge the confidential nature of such information and guarantee that we hold all our clients’ proprietary, confidential, and trade secret information in trust and confidence.