For the most part, even though the U.S. Virgin Islands is not a state, most U.S. federal laws apply in the Territory. This includes federal tax law. However, that law is not governed by the Internal Revenue Service. Instead, a separate local tax code called the “mirror system” exists, and it is administered instead by the U.S. Virgin Islands Bureau of Internal Revenue (BIR).
The U.S. Virgin Islands has had authority from Congress for more than 50 years to allow for tax-exempt companies within the territory. Here are just a few of the most significant benefits of such a structure: Continue reading The Benefits of Being a U.S. Virgin Islands Tax Exempt Company