U.S. Virgin Islands
Justin Blackhall was born and raised on St. Thomas and clerked for the District Court of the Virgin Islands. We help off-island clients understand what doing business in the Territory involves.
As an unincorporated territory, the U.S. Virgin Islands uses the U.S. dollar, U.S. courts and the protection of the U.S. flag, but its income tax system is a "mirror" of the U.S. Internal Revenue Code, administered locally rather than by the IRS. That structure allows the Territory to offer tax incentives to qualifying businesses through its Economic Development Commission (EDC) program.
- Up to a 90% reduction in corporate income tax on qualifying income
- Up to a 90% reduction in personal income tax on qualifying dividends and distributions for bona fide residents
- 100% exemption from gross receipts tax, business property tax and excise tax on qualifying items
- Customs duty reduced from 6% to 1% on qualifying raw materials and components
Qualifying businesses generally must make a capital investment of at least $100,000, hire a minimum number of full-time employees who are Virgin Islands residents (typically ten), and maintain a physical office in the Territory. Program terms change; the current rules are published by the U.S. Virgin Islands Economic Development Authority.
- Evaluating whether a Virgin Islands presence fits your business
- Entity formation and structuring
- Acquisition and financing of residential and commercial real estate
- Introductions to, and coordination with, local counsel, accountants and other professionals
Where Virgin Islands law governs, the firm works alongside counsel admitted in the Territory.