Are there any additional state or local income taxes in the U.S. Virgin Islands?
No. There are no income taxes imposed at the local level, territorial level or any state equivalent level. There are also no sales taxes imposed in the US Virgin Islands. The federal income tax is the only income tax imposed (Note: to be technically correct, under the “mirror code system” of taxation it is actually a territorial income tax that is imposed which amounts to a federal tax equivalent. But, for all practical purposes, it can be thought of as a federal tax). The US Virgin Islands government is the taxing and collecting authority instead of the IRS. While a gross receipts tax of 4% is imposed on the gross revenues of businesses, EDC beneficiaries are 100% exempt from the gross receipts tax.
