(a) Every person who receives a payment of dividends or interest subject to the tax imposed by section 871(a)(1) or 881 of the Internal Revenue Code, as it applies in the Virgin Islands from an IFSE as hereunder provided, and every such applicant subject to a tax on a dividend equivalent amount imposed by section 884 of the Internal Revenue Code, as it applies to the Virgin Islands, is exempted from the payment of 100% of such tax on interest and of that percentage of such tax on dividends and dividend equivalent amounts as is determined pursuant to subsection (b) of this section, to the extent that such dividends, interest and dividend equivalent amounts are derived from or related to the business or industry for which the certificate has been granted.
(b) An applicant granted a tax benefit certificate as hereunder provided is exempted from the requirement to withhold tax pursuant to sections 1441 and 1442 of the Internal Revenue Code, as it applies in the Virgin Islands, with respect to the payments and dividend equivalent amounts referred to in subsection (a) of this section to the extent that such payments and dividend equivalent amounts are exempt from the tax described in said subsection.