 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Taxes In the U.S. Virgin Islands The income tax law of the U.S. Virgin Islands is the Internal Revenue Code of 1986, as amended, "the Code". The Code, as it applies in the U.S. Virgin Islands, has been administered and enforced through what is called the "Mirror Theory" by which the words "Virgin Islands" are substituted for the words "United States" and vice versa. The U.S. Congress established the mirror code in 1922. This unique application of the Code applies only to residents of the U.S.V.I. - individual persons and entities domiciled in the U.S.V.I. With the enactment of the 1986 Tax Reform Act, the U.S. Congress affirmed that a bona fide resident of the U.S. Virgin Islands need only file his or her income tax return with the Virgin Islands Bureau of Internal Revenue (the "BIR") reporting his or her worldwide income and paying tax on such income to that authority only. The taxes paid by bona fide residents of the U.S. Virgin Islands are deposited in the General Fund of the Territory and are not remitted to the IRS. Residents have no separate federal income tax filing requirement with, or payment obligation to, the IRS. Triangle
Corporate Services
|