Tax in British Indian Ocean Territory

Last reviewed: · by TaxProsRated editorial

TL;DR

British Indian Ocean Territory is a UK Overseas Territory with no permanent civilian population (Diego Garcia hosts UK and US military personnel). No general tax framework. UK-Mauritius sovereignty agreement (2024) progressively transitioning some governance arrangements.

Tax authority

UK administration; no domestic tax framework due to absence of permanent civilian population [SC1].

Filing framework

Not applicable for residents (military personnel file in home countries).

Residency

No civilian residents. Military personnel home-country rules.

Personal income tax

Not applicable.

Corporate tax

Not applicable.

Indirect tax

Not applicable.

Cryptoassets

Not applicable.

Treaties

Not applicable. UK-Mauritius sovereignty agreement (2024) transitioning some governance arrangements.

Frequently asked

What is the BIOT tax framework?

UK Overseas Territory with no permanent civilian population. Diego Garcia hosts UK/US military personnel who file in home countries. No domestic tax framework. UK-Mauritius sovereignty agreement (2024) progressively transitioning some governance arrangements.

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Sources

The figures, dates, and rules on this page are sourced from the documents listed below. Where two sources disagree, both are listed.

  1. UK Foreign, Commonwealth and Development Office · accessed
Important disclaimer

Informational only — not tax advice. This page summarises publicly available information about tax in British Indian Ocean Territory as of May 2026. Tax laws change, individual circumstances vary, and the application of any rule depends on your specific facts.

TaxProsRated does not provide tax, legal, accounting, or financial advice. Before acting on anything you read here, consult a qualified tax professional licensed in your jurisdiction (in the US: CPA, Enrolled Agent, or attorney; in the UK: CIOT- or ATT-qualified adviser; in Australia: TPB-registered tax agent; elsewhere: a locally-licensed equivalent). TaxProsRated, its operators, and its contributors disclaim all liability for action taken in reliance on this page.