CORPORATE TAX PROGRAMS
USVI EDC Program (Economic Development Authority)
The USVI Economic Development Authority provides one of the most comprehensive incentive frameworks available in any U.S. jurisdiction. Through substantial reductions in corporate and personal income tax, along with exemptions from specific local taxes, the program is designed to attract businesses that contribute to workforce development, investment, and economic growth in the territory.
This guide explains eligibility, qualifying business categories, tax reduction percentages, the audit and compliance process, and what applicants can expect during the application timeline.
Will your business qualify?
EDC Eligibility
CCompanies applying for USVI EDC benefits must meet specific criteria designed to support the long term economy of the territory. The EDC program is especially suited for firms with scalable operations dependent on technology, research, finance, or specialized knowledge. While the EDC evaluates each business individually, successful applicants typically are export driven services, firms requiring professional or technical expertise, businesses training and employing local residents, companies contributing to ongoing economic diversification or organizations capable of maintaining a stable presence in the territory.
Eligible applicants
- Operate in an approved industry
- Generate the majority of revenue from clients outside the USVI
- Maintain a physical presence in the territory
- Hire local employees or contractors according to program requirements
- Demonstrate financial capability to execute their business plan
- Commit to economic and community contributions
Commonly Approved Business Types
- Financial and investment services
- Management consulting
- Exported services
- E-commerce operations
- Hospitality and tourism support services
- Manufacturing
- Distribution and logistics
- Renewable energy
- Technology support functions
WHAT ARE THE SAVINGS?
Tax Reduction Percentages
The EDC program is especially suited for firms with scalable operations dependent on technology, research, finance, or specialized knowledge. While the EDA evaluates each business individually, successful applicants typically fall into at least one of the following categories:
- Export driven services
- Firms requiring professional or technical expertise
- Businesses training and employing local residents
- Companies contributing to ongoing economic diversification
- Organizations capable of maintaining a stable presence in the territory
EDA RULE
Audit & Compliance
Compliance ensures the long term integrity of the program and creates transparency for all participating companies. EDC participants must follow structured compliance requirements to maintain benefits. These include:
- Annual reporting and disclosures
- Documentation of payroll, community contributions, and capital investment
- Verification of residency for principals benefiting from personal tax reductions
- Maintaining local office operations
- Onsite inspections as needed
- Regular communication with the EDC compliance team
HOW LONG IS THE PROCESS?
EDC Application Timeline
Businesses should expect several months to a year for full approval. Although timing varies based on business complexity, most applicants follow this path:
- Initial consultation and pre-assessment
- Submission of application, financials, and business plan
- Review by EDC staff and economic advisors
- Public hearing
- Board evaluation and decision
- Certificate issuance and program onboarding
WHAT ARE THE COSTS?
EDC Fees
Fees differ based on project category and business size. Exact amounts depend on project structure and scope. Companies can expect:
- Application fees
- Annual compliance fees
- Legal, tax, and consulting costs
- Document preparation and certification fees
For more information, visit the EDC website.
Is YOUR BUSINESS A FIT?
Discover if the U.S. Virgin Islands Tax Incentive Programs Are the Right Fit for You
Answer a few quick questions to see whether your business, income type, and lifestyle align with the requirements of the USVI Economic Development corporate tax programs.