How much is Payroll tax paid by the employee in BVI?
BVI has a simple payroll tax system with a straight 8% deduction from the employee's salary once the salary goes over the tax-free amount of USD 833.33 ...
Modified on: Fri, 7 Apr, 2023 at 11:47 AM
Does the employer also pay Payroll tax on BVI?
Yes, the employer pays 2% or 6% Payroll tax, based on being a Class 1 or Class 2 employer.
Modified on: Fri, 7 Apr, 2023 at 11:49 AM
How does an employer or self-employed person qualify for a Class 1 or 2 employer?
"To qualify as a Class 1 employer, all three (3) conditions must be met: Payroll must not exceed USD 150,000 within a financial year; Annual turnover...
Modified on: Fri, 7 Apr, 2023 at 11:50 AM
Employer tax category Class 1 or 2 - when is this category determined?
Category determined at onset of registration subject to on-going assessment by the Tax Authority. Once an employer upgrades to Class 2, in principle there i...
Modified on: Fri, 7 Apr, 2023 at 11:51 AM
Is there a tax-free sum applicable on BVI?
USD 10.000 is payroll tax-free per year. This is not applicable on SSB and NHI.
Modified on: Fri, 7 Apr, 2023 at 11:52 AM
Is the tax-free sum also applicable/deductible for the ER tax based on class 1 or 2?
Yes the first USD 10,000 per year in gross earnings are deductible for ER payrol taxes regardless of class 1 or class 2 employer
Modified on: Fri, 7 Apr, 2023 at 11:53 AM
Which social premiums are applicable on BVI?
"Two social premiums are applicable: Social Security and National Health Insurance. Social Security (SS) Is a compulsory insurance plan to which employ...
Modified on: Fri, 7 Apr, 2023 at 11:53 AM
When are SSB and NHI premiums and insurances applicable?
Once an individual stays in BVI for more than 3-months (on annual basis), they are subject to SS and NHI. Both premiums are always applied per payslip as lo...
Modified on: Fri, 7 Apr, 2023 at 11:54 AM
Which taxed fringe benefits are mentioned in BVI law?
"The following benefits are mentioned in the montlhy wage tax return: Accommodation: When a rent allowance is paid, the full amount must be included ...
Modified on: Fri, 7 Apr, 2023 at 11:55 AM
In case of Meals while on duty - USD 200 per month must be taxed. It does not matter how many meals? So 1 or 30 meals per month are both taxed at USD 200 per month?
Yes - maximum taxable meal allowance shall be in both cases USD 200 per month
Modified on: Fri, 7 Apr, 2023 at 11:56 AM
The taxed fringe benefit for a company car is USD 250 per month, is this calculated prorated in case starting or leaving the company during the month? Or is it always USD 250 per month no matter how long it was used that month?
A company car is taxed at USD 250 per month, no matter how long it is used in that month.
Modified on: Fri, 7 Apr, 2023 at 11:56 AM
The taxed fringe benefit of 15% for accommodation is applied since the date the accommodation is used, right? Or is the 15% based on the whole year salary if this benefit was used in this year?
Yes, the taxed fringe benefit of 15% for accommodation is applied since the date the accommodation is used. And the taxed benefit is based on the 15% of the...
Modified on: Fri, 7 Apr, 2023 at 11:57 AM
The SS and NHI premiums have an EE and ER part, but can the employer also take the EE part for his account? If so, the EE does not pay these premiums him/herself, does this have fiscal consequences?
Yes, also the EE part can be added to the ER part and this has no fiscal consequences for the employee.
Modified on: Fri, 7 Apr, 2023 at 11:58 AM
The Wage tax has an EE and ER part, but can the total wage tax be fully ER part? If so, the EE does not pay any wage tax him/herself, does this have fiscal consequences?
Yes, also the EE part can be added to the ER part and this has no fiscal consequences for the employee.
Modified on: Fri, 7 Apr, 2023 at 11:58 AM
Are Old age pensions taxed?
Pension plans should be approved by the IRD to qualify as deductible contribution and if approved, the actuall benefits are non-taxable.
Modified on: Fri, 7 Apr, 2023 at 11:59 AM
If an employee turnes 65 and stays working for us, are the SS and NHI still applicable or do they stop at 65?
If an employee continues to work after turning 65, both social premiums will stay applicable. SS premium however changes to 0.5 % of the insurable earnings,...
Modified on: Fri, 7 Apr, 2023 at 12:00 PM
Do Civil Servants pay less SS-premium than regular employees?
Yes, Civil Servants pay 1% less SS premium, both EE and ER pay 0,5% less premium.
Modified on: Tue, 11 Apr, 2023 at 3:50 PM
Does the Social Security Number of employees have a specific layout or number of characters?
All numeric, no fixed maximum number of characters
Modified on: Tue, 11 Apr, 2023 at 3:52 PM
Is the EE part in a pension plan deductible for the Payroll tax and social premiums base salary?
Employee contributions to a pension plan are not deductible for the purposes of determining the wage tax and social premium base salary. This is different f...
Modified on: Tue, 11 Apr, 2023 at 3:54 PM
Are there any wage components that are deductible for base salary for wage tax and premiums?
No, BVI does not know any components that are tax deductible other than a possible gross salary deduction.
Modified on: Tue, 11 Apr, 2023 at 3:55 PM
Does BVI law prescribe any obligatory overtime percentages for certain overtime hours?
Yes, overtime hours more than 40 hours a week are paid at the rate of 150.00% of the employees' regular pay rate. And unless pre-approved by the Labor M...
Modified on: Tue, 11 Apr, 2023 at 3:56 PM
Are overtime hours also taxed at the regular 8% EE? And ER 2% or 6%?
Yes, overtime hours are treated the same way for taxation as for 'regular' remuneration.
Modified on: Tue, 11 Apr, 2023 at 3:56 PM
Are SS and NHI premiums applicable on overtime?
Yes, both premiums ara applicable on overtime.
Modified on: Tue, 11 Apr, 2023 at 3:57 PM
What must be paid during sickness of an employee?
The rate of sickness benefit is 66.67% of the average insurable earnings during the 13 contribution weeks immediately before the sickness began. Sickness Be...
Modified on: Tue, 11 Apr, 2023 at 5:20 PM
How is Severance pay taxed?
Just the regular 8% EE, plus 2 or 6% ER.
Modified on: Tue, 11 Apr, 2023 at 5:21 PM
Are Gratuities and Service Charge paid to the employee taxed?
Yes, both are taxed. However, tips money is untaxed.
Modified on: Tue, 11 Apr, 2023 at 5:22 PM
What’s the difference between Actual Remuneration and Notional Remuneration in Forms P6, P7 and P11?
Actual remuneration refers to funds literally received, whereas Notional remuneration is a representation of the monetary value of the service provided to t...
Modified on: Tue, 11 Apr, 2023 at 5:22 PM
What is exactly meant by employee category ‘Deemed employees’?
Deemed employees are employment relationships that are regarded as employment by way of fiction. Deemed employees include among other partners in a partners...
Modified on: Tue, 11 Apr, 2023 at 5:23 PM
What is exactly meant by employee category ‘Self-employed person’?
These are people who work (independently) for their own account.
Modified on: Tue, 11 Apr, 2023 at 5:24 PM
What is exactly meant by employee category ‘Civil Servant’?
These are people who work for the Government. This category ensures that the deviating and correct SS premium percentage is applied.
Modified on: Tue, 11 Apr, 2023 at 5:24 PM