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Corporate Tax Incentives

The Economic Development Commission (EDC) designed unique and attractive tax incentives for qualified businesses in order to promote investment and growth in the territory. This applies to various industries like manufacturing, transportation, services, R&D or any
business that will advance the economic well-being of the Virgin Islands and its people.

This tax incentive program also makes the Virgin Islands an ideal place to relocate your business and has proven to be profitable times over.

Below are some of the benefits your business can reap if eligible for the EDC program:

  • 90% reduction in corporate income tax
  • 90% reduction in personal income tax
  • 100% exemption on gross receipt tax
  • 100% exemption on business property tax
  • 100% exemption on excise tax payments
  • Reduction in the customs duty from the standard 6% to 1%
  • Tax reduction on royalty income from software developed in the USVI and sold to non-US customers
  • Availability of rental space at below market rates in the St. Croix and St. Thomas Industrial Parks

Basic Requirements for Benefits

In order to receive benefits from the V.I. Economic Development Commission, an applicant must:

  • Provide full-time employment for at least 10 residents of the U.S. Virgin Islands who have resided in the V.I. at least one year prior to being hired by the tax beneficiary.
  • Invest at least $100,000, exclusive of inventory, in an industry or business that advances the economic well-being of the USVI.
  • Meet the requirements of Section 934 and 937 of the Internal Revenue Code.
  • Be an actual investor in the enterprise for which industrial development benefits are sought (not a contractor, subcontractor or other person or corporation acting as an agent).
  • Comply with all federal and local laws and regulations, including environmental laws.
  • Provide an easement for free access to the beach or shoreline, if the applicant will be doing business on property that adjoins the shoreline.
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