---
name: vg-payroll-social
description: "Source-cited draft: payroll & social contributions for British Virgin Islands (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/vg-payroll-social"
  jurisdiction: "VG"
  tax_year: "2025"
  last_updated: "2026-07-13"
  review_status: "pending_review"
---

# British Virgin Islands Payroll & Social Contributions

## Payroll Tax (the main employment tax)

- **Overview of Payroll Tax** — Payroll Tax is the principal direct tax in the BVI, charged on remuneration paid by employers and on self-employed persons carrying on business in the territory. The total rate is split between an employer share and a fixed 8% employee share that the employer withholds. The first US$10,000 of annual remuneration per employee is exempt.
- **Total Payroll Tax rate — Class 1 (small) employers** — 10% of remuneration (8% employee + 2% employer) percent  _([Payroll Taxes Act, 2004](https://bvi.gov.vg/content/payroll-tax))_
- **Total Payroll Tax rate — Class 2 (larger) employers** — 14% of remuneration (8% employee + 6% employer) percent  _([Payroll Taxes Act, 2004](https://bvi.gov.vg/content/payroll-tax))_
- **Employee share of Payroll Tax** — 8% (same for Class 1 and Class 2), withheld by the employer percent  _(Payroll Taxes Act, 2004)_
- **Payroll Tax annual exemption per employee** — First US$10,000 of annual remuneration is exempt USD  _(Payroll Taxes Act, 2004)_
- **Class 1 employer qualification (must meet all)** — Annual payroll ≤ US$150,000, annual turnover ≤ US$300,000, and ≤ 7 employees USD  _(Payroll Taxes Act, 2004)_
- **Class 2 employer trigger** — An employer exceeding any one Class 1 threshold (payroll > US$150,000, turnover > US$300,000, or > 7 employees) is a Class 2 employer  _(Payroll Taxes Act, 2004)_
- **Payroll Tax filing & remittance deadline** — Monthly return and payment due by the 21st of the following month ((approx — confirm))  _(Payroll Taxes Act, 2004)_
- **Social Security contribution — total rate** — 8.5% of insurable earnings (4% employee + 4.5% employer) percent  _([Social Security Act](https://www.vissb.vg/contributions/))_
- **Social Security — employee share** — 4% of insurable earnings percent  _(Social Security Act)_
- **Social Security — employer share** — 4.5% of insurable earnings percent  _(Social Security Act)_
- **Social Security maximum insurable earnings** — US$51,000 per year (2025); rising to US$53,400 per year from 1 January 2026 USD  _([Social Security Act](https://www.vissb.vg/contributions/))_
- **National Health Insurance (NHI) — total rate** — 7.5% of insurable earnings (3.75% employee + 3.75% employer) percent  _([National Health Insurance Regulations](https://www.vinhi.vg/nhi-contribution-breakdown/))_
- **NHI maximum insurable earnings** — US$102,000 per year (2025); rising to US$106,800 per year from 1 January 2026 USD  _([National Health Insurance Regulations](https://www.vinhi.vg/wp-content/uploads/2024/09/NHI-Maximum-Insurable-Earnings-2025-13.09.2024.pdf))_
- **Self-employed Payroll Tax** — Self-employed persons pay Payroll Tax at the applicable class rate (10% Class 1 / 14% Class 2) on their deemed remuneration percent  _(Payroll Taxes Act, 2004)_

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This guide is maintained by the OpenAccountants network — accountants who put
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[openaccountants.com](https://www.openaccountants.com).

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> **General reference only.** This document does not constitute tax, legal, or
> financial advice. Verify figures against the cited primary sources or with a
> licensed professional before relying on them.

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-07-13. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `vg-payroll-social` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/vg-payroll-social. If neither is available, confirm every figure against the official source pages cited above before relying on it.