The BVI is a British overseas territory located in the Caribbean to the east of Puerto Rico and consists of four main islands; Tortola, Virgin Gorda, Anegada and Jost van Dyke along with almost 50 smaller islands. It is is well-known for its zero-rate tax regime and simple tax legislation. The jurisdiction has no capital gains tax, no gift tax, no sales tax or value added tax, no profit tax, no corporation tax, no inheritance tax or estate duty and a zero percent income tax rate. As such it is a popular destination for funds registration, shipping, ship registration and company formation. Government revenues are mainly generated by annual licensing fees and incorporation fees from offshore companies.