(a) The Research and Technology Park Protected Cell Corporation shall pay an annual franchise tax to the Department of Finance based on the worldwide gross receipts of each of the Corporation's Protected Cells. Each Protected Cell with annual worldwide gross receipts less than or equal to $1,000,000 shall be subject to a franchise tax equal to $200. Each Protected Cell with annual worldwide gross receipts greater than $1,000,000 but not more than $5,000,000 shall be subject to a franchise tax equal to $2000. Each Protected Cell with annual worldwide gross receipts equal to or greater than $5,000,000 but not more than $10,000,000 shall be subject to a franchise tax equal to $5,000. Each Protected Cell with annual worldwide gross receipts greater than $10,000,000 but no greater than $20,000,000 shall be subject to a franchise tax equal to $12,500. Each Protected Cell with annual worldwide gross receipts greater than $20,000,000 but no greater than $50,000,000 shall be subject to a franchise tax equal to $15,000. Each Protected Cell with annual worldwide gross receipts greater than $50,000,000 but no greater than $100,000,000 shall be subject to a franchise tax equal to $20,000. Each Protected Cell with annual worldwide gross receipts greater than $100,000,000 but no greater than $250,000,000 shall be subject to a franchise tax equal to $25,000. Each Protected Cell with annual worldwide gross receipts greater than $250,000,000 shall be subject to a franchise tax as determined by the Board but in no event less than $25,000.
(b) Each Protected Cell shall be exempted from the payment of the following taxes:
(1) Each Protected Cell shall be entitled to reduce the amount of each payment of estimated income taxes by ninety percent (90%); and reduce the income tax liability shown on its income tax return for the taxable year by ninety percent (90%) on income from Virgin Islands sources and income that is effectively connected with the conduct of a Virgin Islands trade or business pursuant to sections 934(b)(1) and 937 of the Internal Revenue Code.
(2) Taxes on real property imposed under subtitle 2 of Title 33 of this Code to the extent that same is utilized in one of the businesses or industries for which the Research and Technology Park Protected Cell Corporation has been established.
(3) Gross receipts taxes imposed under Title 33, chapter 3 of this Code.
(4) All excise taxes on building materials, tools, pipes, pumps, conveyor belts or other appliances, materials and supplies necessary for use in the construction, alteration, reconstruction or extension of the physical plant or facilities of the Research and Technology Park imposed under Title 33, chapter 3 of this Code.
(5) All excise taxes on raw materials and component parts brought into the Virgin islands for the purpose of producing, creating or assembling an article, good or commodity imposed under Title 33, chapter 3 of this Code.
(c) Notwithstanding any other law, raw materials and component parts brought into the Virgin Islands by a Protected Cell for the purpose of producing, creating or assembling an article, good or commodity shall be imported into the Virgin Islands at a customs duty rate of one percent (1%).
(d) Exemptions from or reductions in withholding taxes
(1) Every person who receives a payment of interest, dividends or royalties subject to the tax imposed by section 871(a)(1), section 881, or section 884 of the Internal Revenue Code as applicable in the Virgin Islands from the Research and Technology Park Protected Cell Corporation or a Protected Cell shall be exempted from the payment of 100 percent of such tax on interest and shall be subject to a withholding tax of four percent on a payment of dividends or royalties.
(2) The Research and Technology Park Protected Cell Corporation shall be exempted from the requirement to withhold tax pursuant to sections 1441 and 1442 of the Internal Revenue Code with respect to the payments referred to in subsection (1) of this section to the extent that such payments are exempt from the tax described in said subsection.
(e) All benefits provided under subsections 806(a) and 806(b) of this chapter shall be applicable to any Protected Cell as defined in section 801(a) of this chapter.
(f) The provisions of this section shall apply to shareholders, members, partners, grantors, beneficiaries, or other direct or indirect owners of the Research and Technology Park Protected Cell Corporation or a Protected Cell thereof as defined in section 801(a) of this chapter who are established in the Virgin Islands or who are bona fide residents of the Virgin Islands in accordance with section 932(c) of the Internal Revenue Code. Such shareholders, members, partners, grantors, beneficiaries, or other owners shall be entitled to a ninety percent (90%) reduction on income taxes payable with respect to income derived from the dividends or distributions paid to them by the Research and Technology Park Protected Cell Corporation or a Protected Cell thereof as defined in section 801(a) of this chapter.
(g) Subject to approval of the Governor as provided in this chapter, each Protected Cell shall receive the tax benefits provided for in this section upon the prior written approval of the Board of Directors of the Research and Technology Park Corporation of a plan of operation with respect to the respective Protected Cell. The Protected Cell shall not be subject to any otherwise applicable taxes or tax increases that may be subsequently enacted by the Legislature of the Virgin Islands during the period of its benefits, which is the lesser of fifteen (15) years or the period of time as a Protected Cell. Benefits shall be renewable in increments of ten years, initially, and five years thereafter under rules to be developed by the Board of the Protected Cell Corporation.