USVI Tax Incentives & The Economic Development Commission
The U.S. Virgin Islands Economic Development Authority (EDC) has provided a tax incentive framework for entrepreneurs and business entities.
The U.S. Virgin Islands Economic Development Commission (EDC) offers unique tax advantages to businesses that operate within the U.S. Virgin Islands. The wide range of businesses that are eligible for benefits including financial services, investment managers and advisors, high-tech developers and manufacturers, business and management consultants, hotels, and various other service and manufacturing firms. As a part of the long-term plan to maintain a robust and diversified economy in the U.S. Virgin Islands, qualifying businesses receive benefits including:
- up to 90% reduction in corporate and personal income tax;
- 100% exemption on other taxes, including business property and gross receipt taxes;
- U.S. currency, courts, and flag protection;
- rental space at below market rates in sponsored industrial parks.
The Economic Development Commission (EDC) was founded to promote the growth, development and diversification of the economy of the United States Virgin Islands. The EDC is working to develop the human and economic resources of the Territory, preserving job opportunities for residents of the U.S. Virgin Islands, and promoting capital growth to support economic development in the Territory.
“We moved our headquarters from the mainland to the territory five years ago,” said Claire Starkey, President of Fintrac Inc, “and find the combination of tax benefits, location, labor, and lifestyle unbeatable. Our offices are in a beautifully renovated historic warehouse in downtown Charlotte Amalie - five minutes from the airport! That ease of travel, plus excellent telecommunications, were important factors in our relocation decision because we manage multi-year agricultural development programs across three continents.” as excerpted from www.usvieda.org.
The Purpose of USVI Tax Advantages
Specific EDC tax advantages are intended to qualify a congruent system connecting businesses to profit the local economic margin, avoiding duplication of services and providing essential availability of effective personnel, and maximum efficiency, creating programs to unify, expand and develop these efforts in a significant manner and to arrive at this continuous juncture successfully. Section 934 of the US Internal Revenue Code is the segway. This section states VI income tax liabilities are reduced if actively connected to V.I. trade or business attributable to V.I. income. In Section 936, a corporation is able to distribute profits to the parent company with no U.S. corporate income tax obligation.
Our Unique Tax Advantages
Qualified businesses relocating to USVI shores through the Economic Development Commission or EDC program, to be more specific, will be offered a very unique tax incentive program that will at best, include up to 90% reduction in corporate income tax, 90% reduction in personal income tax, and 100% exemption on business property tax. Goods manufactured in USVI may qualify to gain duty-free, quota-free entry into the United States, only requiring a 30% value added requirement in the territory and up to 70% of foreign materials are cleared during this process. There must be substantial transformation in the Virgin Islands and the 30% added value can include less heavy-duty arrangements such as overhead costs and /or financial profit within the territory. Some products only landed 10% of direct processing costs on land and still benefitted from the quota-free, duty-free entry, also labeled “Made In The USA.”
EDC Incentives Outreach
Already the community is making ways to educate and uplift Virgin Island businesses toward maximizing on these new benefits. On May 8, 2014, The V.I. Economic Development Authority (VIEDA) invited potential entrepreneurs, and owners of small-to-mid-sized businesses and the general Virgin Islands Community to an Open House for its very first business incubator. Designated business consultants and support services were able to provide council on several topics involving marketing strategies, tax preparation, accounting, and/or legal matters. Existing entrepreneurs in the district took advantage of this opportunity as it seems to be a common wave to establish connection with the EDC benefit and outreach. This invite stretches out to mainland business, enlightening and informing those prospects on how to join the wave and seek participation in this motion venture.
The Success and Potential of USVI Tax Advantages
Businesses are already experiencing global success. Reputable businesses that openly share their attributes and involvement with EDC include Gold Coast Yachts, U.S. Viking, LLC, and United Electronic Industries Services, LLC [according to the VIEDA main website].
Public-private businesses are also welcomed. Captain Morgan, a worldwide, reputable brand has successfully thrived in the Virgin Islands as a public-private business model.
Relocating to the U.S. Virgin Islands can provide promise to propel successful big business, providing well-developed transportation systems, freight systems, excellent harbors, and deep water ports. A stable and educated labor force provides the commitment and environment necessary to exercise big business in the territory. Skilled workers in many industries including watch, pharmaceutical, rum, and refinery industries have embarked on successes presently in the U.S. Virgin Islands.
America’s Paradise is as much a resourceful U.S. territory as it is a beauty, significantly unchartered with consuming potential in excavation, cultivation, existing business, and entrepreneurship. U.S. Phone plans, U.S. postal system, and telecommunication resources that excel, make day-to-day ventures extremely manageable. You can bring your foreign lifestyle to the islands and create your own paradise. Undoubtedly, you can take advantage of the ideal “home-office” experience. Historical architecture, beach-front facility, ocean views, impressionable properties and landscapes make it easy to imagine your business location and successfully transition it to your reality.
“We moved our headquarters from the mainland to the territory five years ago,” said Claire Starkey, President of Fintrac Inc, “and find the combination of tax benefits, location, labor, and lifestyle unbeatable. Our offices are in a beautifully renovated historic warehouse in downtown Charlotte Amalie - five minutes from the airport! That ease of travel, plus excellent telecommunications, were important factors in our relocation decision because we manage multi-year agricultural development programs across three continents.” as excerpted from www.usvieda.org.
