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USVI Economic Qualifiers for the EDC 90% Tax Reduction Program

Aug 17, 2007
If you have a hankering for your own business and a yen for fun in the sun, your best bet is the U.S. Virgin Islands. Here you can build your own business, or grow your existing one, and keep most of what had been your tax payments for yourself and your firm.

The USVI and its Economic Development Council has a plan to let you reap a tremendous financial boon and corporate benefits that will wow you. Here are the industries and types of firms that can apply for this 90 percent federal income tax break for business. They are divided up into four different categories.

The first qualifier category includes firms who produce milk and other dairy products, that manufacture rum and that assemble and manufacture time pieces and other jewelry.

Category two is made up of companies engaged in product assembly, and any manufacturing other than jewelry and watch assembly, agriculture or food processing, Mari culture, any marine related firm, the processing of raw materials, guest houses or hotel facilities, and companies offering telecommunications or transportation services.

The next category of qualifying organizations include those engaged in services such as financial or investment advisors and managers, management and business consultants, software designers and developers, firms and sites engaged in e-commerce, call / contact centers, high technology companies, businesses engaged in international public relations or trading and distributing internationally, and any other type of business that serves clients that are located beyond the borders of any of the Virgin Islands.

The fourth category of qualifying businesses include utility providers, healthcare facilities, recreation and athletic facilities, insurance carriers, physicians and their corporate entities and any other firms that the Economic Development Commission decides are appropriate. All that's required to add a firm to the qualifier list is the EDC's decision that doing so will advance the well being and economic growth of the United States Virgin Islands and its residents.

To earn the benefits of EDC a company must qualify. The requirements include a minimum investment of $100,000 - this does not include inventory, and residence either as an individual or a business entity in the USVI. Business entity includes partnership, corporation, trust, limited liability partnership and limited liability corporation.

The applicant must actually be an investor in the firm that is applying, and that firm must employer at least 10 full time employees, 8 of which must be residents of the Virgin Islands. The company must also qualify ecologically; i.e., it must be a firm that is friendly to the environment in mission and in practice. The firm, if contracting for services or products, must use firms licensed with and registered in the Virgin Islands. The company must also provide assistance either financial or through on site training to educate local VI residents. It must also maintain its payroll account in a bank that resides in the U.S. Virgin Islands.
About the Author
GR is a retired Airline Captain who has been involved in real estate and building since childhood. Now, he is retired in the US Virgin Islands where he writes and does more marketing from home. A good place to learn about the islands and to find your home is http://www.StThomasLuxuryHomes.com
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