St. Croix & US Virgin Islands Business Information
Demographics:
While the economy is obviously heavily dependent on tourism, the Territory seeks to expand its economic base through the further development of light to medium industry.
The Industrial Development Commission oversees activities at industrial parks. The St. Croix Industrial Park has 150,000 sq. ft. of space. The Commission is actively seeking and encouraging new light, non-polluting industries.
St. Croix is also home to six watch companies. Small manufactures produce pharmaceuticals, rum, soda, electronics, garments and boats.
Incentives and benefits for new businesses include a maximum 90% exemption from local corporate income tax payments, a maximum 90% exemption from income taxes paid by resident stockholders on dividends received from the company, a maximum reduction in the U.S. Customs rate from 6% to 1%, a maximum 100% exemption on excise taxes for building materials, machinery, equipment, and supplies used in construction, alteration, reconstruction or extension of the physical plant or facilities and a maximum 100% exemption from property taxes and the territory's 4% gross receipts tax.
The benefits will last for ten years except in Frederiksted, St. Croix where they're applicable for fifteen years. There are many benefit packages concerning spreading their benefits out over a longer period of time.
Investment:
Investors must provide full-time jobs for at least ten U.S. Virgin Islands residents, 80% who have lived here at least one year. Local suppliers of goods and services get a 15% preference. Those with beach front businesses must provide an easement to allow free access to the beach or shoreline. Investors must meet the requirements of the Section 934 of the Internal Revenue Code, which applies to U.S. Virgin Islands corporations. U.S. Virgin Islands subsidiaries of mainland corporations must meet the requirements of Section 936 of the Federal Internal Revenue Code. Companies must comply with all Federal and local laws, including those that govern the environment.
Territorial and Federal laws provide advantageous tax breaks to offshore companies. The Industrial Development Act of the US Virgin Islands allows a business to enhance profits and to retain almost all those profits tax-free.
For a full description click www.usvieda.org for the U.S.V.I. Government link to the Industrial Development Program.
The marine industry accounts for 10% of the territory's economy. Film making and agriculture are other big businesses. The Chamber of Commerce in St. Croix works hard to improve the business climate.
Why choose St. Croix? You have the benefits of the United States Court System, U.S. dollar, U.S. Postal Service, U.S. Customs, a productive work force with wage rates generally lower than U.S., International Banking & Financial services and much more!