Name of the Organization : Economic Development Authority
Type of Facility : EDC Tax Incentives Application
Country : United States Virgin Islands
Website : https://www.usvieda.org/
Apply Now : https://www.usvieda.org/
Related :
Economic Development Authority Start/Grow/ Relocate Your Business U.S. Virgin Islands :
https://www.statusin.org/8182.html
EDC Tax Incentives:
The United States Virgin Islands (USVI) is more than just an ideal tourism destination in the Caribbean with its pristine beaches, wonderful sunshine, great duty-free shopping, and intriguing historic monuments. It is also the ideal location for doing business and maximizing your company’s profits.
EDC application takes approximately 60 days to get an approved.
The USVI offers a very unique tax incentives program for qualified businesses through the Economic Development Authority and its Economic Development Commission or EDC Program. We encourage global companies in the areas of manufacturing, service businesses such as high-technology assembly plants, pharmaceuticals and outsourcing companies such as call centers and business as well as other qualified businesses to qualify for the Economic Development Commission Program. Our goal is to provide the necessary incentives to make your business expansion or relocation a reality.
The Virgin Islands Economic Development Authority has a memorandum of understanding with the University of the Virgin Islands Research and Technology Park (RTPark) to provide a framework for collaborative efforts to achieve complementary outcomes for the benefit of the Virgin Islands. The RTPark typically engage as a business partner, aligning their resources, including generous corporate tax incentives, with workforce development opportunities benefiting your company and the USVI economy.
Benefits and advantages for businesses in the EDC program can be up to:
** 90% reduction in corporate income tax
** 90% reduction in personal income tax
** Reduction in the customs duty from the standard 6% to 1%
** 100% exemption on excise tax payments
** 100% exemption on business property tax
** 100% exemption on gross receipt tax
** 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
Investors in the U.S. Virgin Islands also enjoy:
** A business-friendly environment
** An educated labor force
** U.S. currency, courts and flag protection
** Easy air access to and from the United States, South America, Europe and other Caribbean Islands
** World-class telecommunications
** “Made in the USA” labeling
** Duty free, quota free exporting of USVI-made goods into the United States
** Immigration advantages
** Shipping advantages
** Availability of prime rental space
Jones Act Exemption: The U.S. Virgin Islands is exempt from the Jones Act, a cabotage law which requires freight moving between U.S. ports to be carried on U.S. flag vessels. Freight between U.S. ports (including Puerto Rico) and the V.I. may be carried on foreign flag vessels.
It is also our mission to encourage and assist in the creation, development and expansion of business and industry. By locating your business or qualified portion thereof to the Virgin Islands, you may be eligible to receive the above-listed tax incentives for your business for a period ranging from ten to thirty years.
Our general mandate is:
** To promote the growth, development and diversification of the economy of the Virgin Islands
** To benefit the people of the Virgin Islands by discovering and developing the fullest possible extent the human and economic resources of the territory
** To establish capital and preserve job opportunities for residents of the Virgin Islands
** To promote capital formation for industrial development in the Virgin Islands
We encourage you to peruse this site for additional information on qualifying and applying for benefits under our program, and we look forward to serving you!
EDC Eligibility:
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. Provided further, than an enterprise which is apply for economic development benefits as a category IIA enterprise engaged in non-labor intensive financial services, shall be required to employ a minimum of five (5) full-time persons.
** 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 of the Internal Revenue Code in the case of a USVI corporation, individual or partnership, or Section 936 of the U.S. Internal Revenue Code in terms of a V.I. Subsidiary of a U.S. Corporation.
** 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.
General Information :
Eligible activities generally fall within several categories, although the EDC has the authority to grant benefits to any business that will advance the economic well-being of the Virgin Islands and its people:
Category I:
** Rum Production
** Milk/Dairy Production
** Watch and Jewelry Manufacturing and Assembly
Category II:
** Product Assembly, Manufacturing (other than Jewelry and Watch Manufacturing and Assembly)
** Agriculture/Food Processing
** Mariculture/Food Processing
** Marine Industry
** Raw Materials Processing
** Hotels/Guesthouses
** Transportation and Telecommunications
Category IIA – Service Businesses, not limited to, but including:
** International Commercial Distribution and Trading Services
** International Public Relations Services
** Publicity firms
** Economic, Scientific or Management Consulting Services
** Public Auditing
** Processing, Editing and Dubbing of Cinematographic Films
** Commercial and Graphic Art Services
** News Syndicates
** Mail Order Firms
** Assembly, Bottling and/or Export Packing Operations
** Computer Service Centers
** Maritime Vessels and Aircraft Repair and Maintenance Services
** Machinery and Heavy Equipment Repair Services, including but not limited to Agriculture, Industrial, Construction, Mining and Transportation Equipment and Machinery
** Electrical and Electronic Equipment and Watch Repair Services
** The Production of Engineering and Architectural Blueprints and Plans to be used in the construction of projects to be located outside of the Virgin Islands
** Photographic Laboratories, including Film Processing
** Dental Laboratories
** Optical and Ophthalmological Laboratories
** Prefabricated Houses of any type of material
** Investment Managers and Advisors
** Financial Services
** Research and Development
** Business and Management Consultants
** Software Developers
** E-Commerce Businesses
** Call Centers
** High Tech Businesses
** International Public Relations Firms
** International Trading and Distribution
** Any other businesses serving clients located outside the Virgin Islands
Category III:
** Utilities
** Health Care Facilities
** Recreation Facilities
View Comments (1)
I see a 90% reduction in corporate tax, but what if the entity is an S-corp or LLC, a pass through entity. Would the tax only be on income or disbursement? Or does the USVI not use C-corps, S-corps, and LLCs?
Additionally, I saw one article that noted the benefits do not come into effect for 5 years? Is that accurate?
And finally, how would the $100,000 need to be invested and over what period? Notes say not inventory, but could it be computer equipment, etc? Please explain further.
My plans would be for ecommerce and callcenter in Category IIA with customers in the US as well as the rest of the world.
Thank you!