A recent competency questionnaire between company directors showed a global shift towards a higher fiscal responsibility behaviours and morals and a trend to complete tax responsibilities.
Companies around the world are taking a more pro-active approach and start thinking on a more universal scale about how to become more transparent about their fiscal activities. More than ever before, where to incorporate and operate from is becoming the most common and interesting variable with the ever-evolving global standard.
Additionally, fiscal transparency is the first step towards more responsible behaviour. Below is an analysis of the implications regarding some of the corporate structure elements in the British Virgin Islands (BVI) business companies and Cyprus companies, by explaining their key characteristics and evaluating how each jurisdiction is adhering to the increasingly strict compliance standards.
Cyprus limited liability companies benefit from the security and ease of being in the European Union. It has a simple and transparent tax system which offers one of the lowest corporate tax rates in the EU. The Republic of Cyprus is a free market economy providing vast opportunities for international business and efficient tax planning.
The main characteristics of the Cyprus corporate and tax legal system are outlined below:
The British Virgin Islands are a member of the British commonwealth and governed by English Common Law, The BVI is one of the world’s leading finance centres offering stability with a progressive and democratic society. The financial sector is responsible for just over 50% of total government revenues. The BVI is committed to retaining an investor’s right to privacy providing a professional banking sector with top quality legal, accounting and trust and management services.
The jurisdictions most important characteristics are listed below:
Both Cyprus and the BVI are similar in the way that both apply versions of the UK Companies’ Act, both are based on a common law legal system and have both enjoyed stability and a dependable Court system. However, while Cyprus is a full EU member state under EU regulation; any ultimate appeals regarding BVI companies can ultimately be heard by the Privy Council in the UK.