(a) Each captive insurer may make an Exempt Company Election under chapter 14 of Title 13 of this Code to be an exempt company subject to the provisions of such title and shall thereupon be granted a reduction in the income tax liability shown on its income tax return for each taxable year by 100 percent for such income that meets the requirements of sections 934 and 937(b) of the Internal Revenue Code of 1986, as amended, and any successor provisions to that Code, and the Treasury Regulations promulgated thereunder, as being from Virgin Islands sources or effectively connected with the conduct of a trade or business within the Virgin Islands.
(b) (1) Every person who receives a payment or allocation subject to the tax imposed by Sections 704, 871(a)(1), 881, 884, or 1446 of the Internal Revenue Code, as applicable in the Virgin Islands, from a captive insurer is exempt from the payment of 100 percent of such tax.(2) A captive insurer is exempt from the requirement to withhold tax pursuant to sections 1441, 1442, and 1446 of the Internal Revenue Code as applicable in the Virgin Islands to the extent that such payments are exempt from the tax described in paragraph (1).
(1) Every person who receives a payment or allocation subject to the tax imposed by Sections 704, 871(a)(1), 881, 884, or 1446 of the Internal Revenue Code, as applicable in the Virgin Islands, from a captive insurer is exempt from the payment of 100 percent of such tax.
(2) A captive insurer is exempt from the requirement to withhold tax pursuant to sections 1441, 1442, and 1446 of the Internal Revenue Code as applicable in the Virgin Islands to the extent that such payments are exempt from the tax described in paragraph (1).
(c) A captive insurer is exempt from any other taxes imposed by the Virgin Islands, including without limitation real property used in the business of the captive insurer, gross receipts taxes, excise taxes, and premium tax.
(d) The Office of the Lieutenant Governor is authorized and directed to provide any captive insurer, within sixty (60) days of a request by the captive insurer to do so, a contract signed by the Lieutenant Governor, on behalf of the Government of the Virgin Islands, stating that the benefits of this section as they exist upon the date of the contract shall be and remain available to said capital insurer, and shall not be reduced, until twenty (20) years have elapsed so long as the exempt company is:(1) in compliance with all laws, rules and regulations of the Virgin Islands; and(2) current in the payment of taxes and fees to the Virgin Islands. The contract shall further state that the Government shall not adopt any legislation impairing or limiting the obligation of such contract.
(1) in compliance with all laws, rules and regulations of the Virgin Islands; and
(2) current in the payment of taxes and fees to the Virgin Islands. The contract shall further state that the Government shall not adopt any legislation impairing or limiting the obligation of such contract.
(e) The contract shall become effective with regard to a captive insurer upon its acceptance by the captive insurer. Such acceptance shall be indicated by the signature of an officer or the registered agent of the captive insurer on a copy of the contract, which copy shall be returned to the Office of the Lieutenant Governor and shall remain on file in that office.