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| INTRODUCTION |
The U.S. Virgin Islands, comprising the islands of St. Thomas, St. Croix and St. John, has a current population of approximately 110,000.
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| LAW AND TAXATION |
The constitutional status of the U.S. Virgin Islands is that of an "Unincorporated Territory" of the United States with the U.S. Virgin Islands regarded by the U.S. for tax and customs duty purposes as a separate tax jurisdiction. Tax treaties entered into between the U.S. and its treaty partners do not apply to the U.S. Virgin Islands.
The U.S. Virgin Islands is a tax haven for certain categories of foreign investors. Through its Exempt Company legislation, the U.S. Virgin Islands offers several benefits:
- Total exemption from all U.S. Virgin Islands and U.S. taxes
- A 20-year government contract guaranteeing the company's tax exempt status (guarantee is issued after the company is incorporated)
- Eligibility for the benefits afforded by the United States Treaties of Friendship, Commerce and Navigation and Investment Treaties
- An Exempt Company is exempt from all U.S. Virgin Islands income, gross receipts, withholding taxes and license requirements. In addition, Exempt Companies do not pay any tax on U.S. Virgin Islands source income such as interest and dividends.
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| CORPORATE REQUIREMENTS |
Advantages of using Exempt Companies include access to modern company management, accounting and banking services in the U.S. Virgin Islands. The incorporation and ongoing corporate governance of an Exempt Company is subject to the U.S. Virgin Island's corporate code, which is based on the Delaware Corporate Code of 1953.
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