The U.S. Virgin Islands is committed to attracting new businesses to the Territory and offers unbeatable tax incentives and economic development packages to companies that locate in the Islands.

Tax Incentives include:

  • 90% Exemption on Local Income Taxes (which are paid in lieu of Federal Income Taxes)
  • 90% Exemption on Dividends
  • 100% Exemption on Gross Receipts Taxes
  • 100% Exemption Property Taxes
  • 100% Exemption on Excise Taxes
  • 1% Custom Duties
  • Other Free Trade Zone equivalent import/export tarif relief can be included

These tax incentives are authorized jointly by the United States tax laws (IRC 934 & IRC 937) and the U.S. Virgin Islands tax laws. It is a legitimate tax program designed to attract business to the U.S. Virgin Islands to order to help the Territory diversify its economy.

The U.S. Virgin Islands Economic Development Authority (EDA) also offers customized economic development packages to businesses that locate in the Territory. These packages vary but often include bond financing for facility construction and infrastructure improvements and customized tax exemption packages that build on the tax incentives described above.

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