(a) Each applicant granted a certification as a Beneficiary is exempt from the payment of the following taxes:(1) Taxes on real property to the extent that is used in the business or industry for which a certification has been granted for a period of 20 years if the Beneficiary remains in compliance with all the requirements of this subchapter.(2) Gross receipts taxes, for a period of 20 years, if the Beneficiary remains in compliance with all the requirements of this subchapter; but this exemption does not apply to the gross receipts of businesses operated by a concession or rental agreement on the premises of beneficiaries, including hotels, for which businesses separate licenses are required or which, as determined by the Commission, are not ordinarily related to, or do not constitute an essential part of the operation of the Beneficiary, and which are not otherwise eligible for economic development benefits as a distinct enterprise.(3) Excise taxes on raw materials for entities in the manufacturing industries 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 applicant.(4) Ninety percent of income taxes for a period of 20 years, if the Beneficiary remains in compliance with all the requirements of this subchapter.
(1) Taxes on real property to the extent that is used in the business or industry for which a certification has been granted for a period of 20 years if the Beneficiary remains in compliance with all the requirements of this subchapter.
(2) Gross receipts taxes, for a period of 20 years, if the Beneficiary remains in compliance with all the requirements of this subchapter; but this exemption does not apply to the gross receipts of businesses operated by a concession or rental agreement on the premises of beneficiaries, including hotels, for which businesses separate licenses are required or which, as determined by the Commission, are not ordinarily related to, or do not constitute an essential part of the operation of the Beneficiary, and which are not otherwise eligible for economic development benefits as a distinct enterprise.
(3) Excise taxes on raw materials for entities in the manufacturing industries 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 applicant.
(4) Ninety percent of income taxes for a period of 20 years, if the Beneficiary remains in compliance with all the requirements of this subchapter.
(b) Tax exemptions and benefits may be granted under this section only if the applicant granted the certificate can provide certification from the Bureau of Internal Revenue that the applicant has filed and paid all taxes, penalties and interest and from the Office of the Lieutenant Governor that the applicant has filed its required annual report or has satisfactorily made agreement to pay the taxes or file the required reports.
(c) A successful applicant may be entitled to:(1) reduce the amount of each payment of estimated income taxes by 90%; and(2) reduce the income tax liability shown on the income tax return for the taxable year by 90%; for each of the remaining years specified in the revised Economic Zone certificate granted the applicant under this section. In the case of estimated income taxes the reduction must be prorated over the quarterly payments due, or constructively due by the applicant, and in the case of the determination of the applicant’s income tax liability, by the entire amount of the subsidy thus constructively calculated.
(1) reduce the amount of each payment of estimated income taxes by 90%; and
(2) reduce the income tax liability shown on the income tax return for the taxable year by 90%; for each of the remaining years specified in the revised Economic Zone certificate granted the applicant under this section. In the case of estimated income taxes the reduction must be prorated over the quarterly payments due, or constructively due by the applicant, and in the case of the determination of the applicant’s income tax liability, by the entire amount of the subsidy thus constructively calculated.
(d) The reduction of income tax liability on a current basis of, or the reduction of income taxes otherwise payable by an applicant entitled to such reduction is applicable with respect to all of the computations, assessments, and collection of such income taxes, as provided by the 1954 Internal Revenue Code, as amended, and with respect to the payment of the estimated income taxes, as provided by applicable law.
(e) An individual whose permanent residence is in the Virgin Islands; a corporation that is organized under the laws of the Virgin Islands; or a corporation organized under the laws of the United States, or one of the states, territories or Commonwealths of the United States, whose principal office is located in the Virgin Islands, is presumed to continue to be permanently domiciled in the Virgin Islands for purposes of this section, unless it is established that such residency or domicile has been superseded by a new residence or domicile.
(f) (1) This subsection applies to:(A) shareholders, members, partners, grantors, beneficiaries, or other direct or indirect owners who are bona fide residents of the Virgin Islands pursuant to section 932(c) of the Internal Revenue Code of 1986, as amended and who have been approved for tax reductions by the Enterprise Zone Commission; and(B) entities, including without limitation, corporations, trusts, partnerships and limited liability companies, established in, qualified, or registered to do business in the Virgin Islands which have been approved for tax reductions by the Commission.(2) The shareholders, members, partners, grantors, beneficiaries, or other owners referenced in paragraph (1) of this subsection are entitled to a 90% reduction on income taxes payable with respect to income derived from the dividends paid to them or the distributive share allocated to them by the Beneficiary, as applicable, and which dividends or distributive shares are attributable to income derived from the business or industry for which the certificate is granted and income from investments described in section 713d(c)(2) of this title.
(1) This subsection applies to:(A) shareholders, members, partners, grantors, beneficiaries, or other direct or indirect owners who are bona fide residents of the Virgin Islands pursuant to section 932(c) of the Internal Revenue Code of 1986, as amended and who have been approved for tax reductions by the Enterprise Zone Commission; and(B) entities, including without limitation, corporations, trusts, partnerships and limited liability companies, established in, qualified, or registered to do business in the Virgin Islands which have been approved for tax reductions by the Commission.
(A) shareholders, members, partners, grantors, beneficiaries, or other direct or indirect owners who are bona fide residents of the Virgin Islands pursuant to section 932(c) of the Internal Revenue Code of 1986, as amended and who have been approved for tax reductions by the Enterprise Zone Commission; and
(B) entities, including without limitation, corporations, trusts, partnerships and limited liability companies, established in, qualified, or registered to do business in the Virgin Islands which have been approved for tax reductions by the Commission.
(2) The shareholders, members, partners, grantors, beneficiaries, or other owners referenced in paragraph (1) of this subsection are entitled to a 90% reduction on income taxes payable with respect to income derived from the dividends paid to them or the distributive share allocated to them by the Beneficiary, as applicable, and which dividends or distributive shares are attributable to income derived from the business or industry for which the certificate is granted and income from investments described in section 713d(c)(2) of this title.
(g) Not later than June 30 of each year, the Director of the Virgin Islands Bureau of Internal Revenue shall remit the income taxes received pursuant to subsection (a)(4) to the Commissioner of Finance. The Commissioner of Finance shall deposit one percent of the amount received into the Education Maintenance Fund.