Virgin Islands Tax Benefit

by : Garland Choate

If you have your own firm and you're fed up and tired of Uncle Sam reaping too much of your hard earned profits, you might consider moving to St. Thomas or other parts of the United States Virgin Islands (USVI). Here you can build your own business, or grow your existing one, and keep most of what had been your tax payments for yourself and your firm.

The objectives and general purpose of the organization is to boost the growth of industry and business in the U.S. Virgin Islands and to aid in its development, expansion and conception. A side authorization, one that is a answer of the EDC's success in its mission is the growth of job opportunities for occupant of USVI.The main mission of the USVI EDC is written in its Title 29 bylaws. The Economic Development Commission has offices not only in St. Croix and St. Thomas but also in Washington DC and New York City.

The bare truth seems to be that U.S. companies, and somebodies who want to become entrepreneurs have just not learned about this wonderful business development and start up program.One might wonder why U.S. businesses aren't flocking to the Virgin Islands for this benefit and why the Economic Development Commission hasn't been infested by applications.

Companies have to characterize for the help of the EDC but those who do receive a number of profits, the best of which is a reduction of 90 percent in the income tax they must pay to the U.S. federal government.

The territorial and U.S. federal governments put their bureaucratic heads together to come up with a series of business tax motivators that would force growth and investment in the USVI. As a result the USVI must heavily rely on services and exporting to yield employment and income for its residents.If this seems like a rather outrageous offering, and perhaps one with a catch consider this: the economy of the Virgin Islands is insular and small. Its own natural resources are scarce. The major focus on this growth was expected to be on activities related to trade and export.

As of the last documented report, close to 100 firms that employed close to 6000 islanders were realizing federal tax benefits from their EDC participation. The industries were varied, and included guest houses and hotels,manufacturing and gathering, tourist attractions, service industry businesses,transportation services, and manufacturing. Of the latter, the categories including the production of aluminum, refinery of oil, watch manufacture, pharmaceuticals, rum and liquor, high tech electronic parts and assembly and construction materials.