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What you need to know about the Economic Development Commission of the US Virgin Islands

What you need to know about the Economic Development Commission of the US Virgin Islands

The Virgin Islands is one of the crown jewels of the Caribbean. This US territory is a place of balmy weather and white-sand beaches. It’s also where businesses enjoy some of the most generous tax breaks anywhere in the world.

As of July 2018, the Economic Development Commission or EDC has helped more than 60 companies take their business to the Virgin Islands.

Take advantage of the great business opportunities waiting for you in the US Virgin Islands with the help of the EDC.

What is the EDC?

The EDC is part of the United States Virgin Islands Economic Development Authority or the VIEDA. It promotes the development and diversification of the economy on the islands. Its mission is to encourage and assist in creating, developing, and expanding commerce and industry in the territory.

With limited natural resources, the Virgin Islands relies primarily on export trade and services to boost the local economy. In fact, many of the islanders are employed in these sectors.

How does the EDC work?

The EDC develops human and economic resources in the Virgin Islands by preserving job opportunities for residents. The division also promotes capital information. The Virgin Island’s economy is bolstered by programs that give businesses benefits and tax incentives which aim to encourage more companies to do business here.

The commission provides a tax incentives program specifically for those who want to expand or relocate their business to the VI.

Qualified companies can enjoy a 90% reduction in corporate and personal income tax. These companies can also receive 100% exemption on the following:

  • Gross receipts tax
  • Business property tax
  • Business excise tax payments

Other benefits include:

  • Reduced customs duty from the standard 6% to 1%
  • Deducted tax royalty income from any software developed in the USVI and sold overseas
  • Rental space in St. Thomas Industrial Park at lower market rates

The program has succeeded in luring companies from diverse industries such as manufacturing, outsourcing, and high-technology assembly to invest in the territory.

The EDC also has a program for small business entrepreneurs called the VIEDA Small Business Incubator. It provides support by putting the businesses near community assets and available services so that locals can work hand-in-hand with them.

What are the other advantages of setting up your business in VI?

The US Virgin Islands is part of the United States. Therefore, businesses don’t have to go through the process of incorporating to another country. They can also use US currency, “made in the USA” labeling for products, and enjoy certain shipping advantages.

These businesses have no quota when exporting goods made in the USVIA to the mainland. They won’t have to pay state or territory tax and have duty free imports.

The island’s fiber-optic network is another advantage for setting up shop here. VI has one of the fastest broadband connections in the Western Hemisphere because of the Virgin Islands Next Generation Network or viNGN. This, on top of the EDC’s competitive and wide-ranging tax incentives.

Thinking of relocating to the Caribbean? Get the help of the best real estate agent in St. Thomas, Virgin Islands. Call today: (340) 690-9995 or send an email to Barbara(at)seaglassproperties(dotted)com.