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 For
the young entrepreneur or the established businessman, the Virgin
Islands have one of the best-kept secrets for fostering new industries.
A special tax incentive program conducted by the government to encourage
corporations to locate there. Certain tax incentives placed on worldwide
exports has led to the establishment of more than 2500 foreign sales
corporations. Financial service industries have taken advantage of the
Virgin Islands’ good infrastructure, excellent transportation links,
U.S. currency, postage, modern communications and generous tax benefits.
Unlike
most of its Caribbean counterparts, industry is well
developed in the Virgin Islands exports include textiles, electronic
equipment, watches, rum
and pharmaceuticals. In 1998 St. Croix’s Hess Oil refinery (Hess Oil
Co) the largest in the western hemisphere merged with Petroleum de
Venezuela to create a 625 million company called Hovensa. New investors
in US markets including more than 30 large US corporations benefit from
the many industrial incentives and tax concessions.
 The
lack of commercial farming and its location in the Caribbean make the
Virgin Islands heavily dependent on imports for domestic consumption and
later for re-export such as oil and manufactured goods. Growing food
crops for the domestic market is the main form of agriculture. Fishing
is mostly for game, sport fishing host large events yearly. Nevertheless
some natives and mainlanders do fish for a living.
For
most of the 20th century sugarcane and to a lesser extent
cotton was at the center of the economy. Due to the lack of many natural
resources, the economic backbone of the territory has become tourism.
The more than 200 miles of beaches, numerous historical sites and
recreational facilities create a booming tourism industry. To encourage
manufacturing, in 1987 the US government granted the Virgin Islands the
ability to offer certain tax concessions.
For
more information on our Tax Incentive Program, please contact the
Economic Development Authority (EDA) at 1-340 714-1700.
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