Income tax reduction; benefit options

Checkout our iOS App for a better way to browser and research.

  • (a) Each applicant granted a tax incentive benefit certificate shall have its income tax liability for income derived from the business for which the certificate is granted, and income from investment described in this section reduced on a current basis, as provided in this section.

  • (b) All exemptions granted under section 742 must be made available to the applicant.

  • (c) The option to choose the term and percentage of its tax exemptions granted under subsection (e) must be made available to the applicant.

  • (d) An applicant may obtain tax benefits only commencing with the first day of the applicant’s taxable year for income tax purposes, or commencing one day after the due date for the payment of an installment of estimated taxes by the applicant. If no payment of an installment of estimated income taxes by the applicant is due, then the date of commencement of the benefits under this section shall be the due date of such a payment if one were due by the applicant.

  • (e) An international financial services entity is entitled to:

    • (1) reduce the amount of each payment of estimated income tax by seventy-five percent if its principal place of business is located on St. Thomas or St. John, and ninety-five percent if its principal place of business is located within the town limits of Christiansted, St. Croix as defined by the Christiansted Town Limits map recorded in the Cadastral Section of the Office of the Tax Assessor, and by one hundred percent for a period of ten years, at which time the beneficiary must apply for renewal, if the principal place of business is located within the town limits of Frederiksted, St. Croix, as defined by the Frederiksted Town Limits map recorded in the Cadastral section of the Office of the Tax Assessor; and

    • (2) reduce its income tax liability shown on its income tax return for the taxable year by seventy-five percent if its principal place of business is located on St. Thomas or St. John, and seventy-five percent if its principal place of business is located within the town limits of Christiansted, St. Croix as defined by the Christiansted Town Limits map recorded in the Cadastral section of the Office of the Tax Assessor, and by one hundred percent for a period of ten years, at which time the beneficiary must apply for renewal, if the principal place of business is located within the town limits of Frederiksted, St. Croix as defined by the Frederiksted Town Limits map recorded in the Cadastral section of the Office of the Tax Assessor for each of the years specified in the tax incentive benefit certificate or renewal thereof. In the case of estimated income taxes, such reduction must be prorated over the quarterly payments due, or constructively due by the applicant, or in the case of the determination of its income tax liability, by the entire amount of the subsidy thus constructively calculated.

  • (f) The reduction of income tax liability on a current basis of, or the reduction of income taxes otherwise payable by, applicants entitled to such reduction is applicable with respect to all of the computations, assessments, and collection of such income taxes, as provided by the 26 U.S.C. section 934(b)(1), the Internal Revenue Code of 1986, as amended, as applicable to the Virgin Islands.

  • (g) A corporation that is organized under the laws of the Virgin Islands, a corporation that is organized under the laws of the United States, or one of the states, territories or commonwealths, whose principal office is located in the Virgin Islands is presumed to be continually domiciled in the Virgin Islands for purposes of this section, unless it is established that such domicile has been superseded by a new domicile.

  • (h) This section applies to corporations, limited liability companies, limited liability partnerships, shareholders, members, partners, trusts, individuals or other direct or indirect owners of corporations or other entities.


Download our app to see the most-to-date content.