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Source Income, is the IRS form to be used for this computation and credit. There is no sales tax in the USVI; however, there is a tax of 4% levied on the gross receipts of all businesses.
US social security (FICA) and self-employment taxes are imposed in the US Virgin Islands. Payments are remitted to the US mainland rather than to the Virgin Islands Bureau of Internal Revenue.
USVI Bona-Fide Resident (Pub 570) Meet the presence test, Do not have a tax home outside the relevant territory, and. Do not have a closer connection to the United States or to a foreign country than to the relevant territory.
US Virgin Islands does not use a state withholding form because there is no personal income tax in US Virgin Islands.
Although the BVI is known as a tax haven, the jurisdiction's strict adherence to the Economic Substance Act has helped to improve its reputation by ensuring that at least a majority of the business activities conducted are within the BVI.
The USVI has its own income tax system based on the same laws and tax rates that apply in the United States. An important factor in USVI taxation is whether, during the entire tax year, you are a bona fide resident of the USVI.
In addition to collecting the territory's real property taxes, the Tax Collector's Office also issues property tax clearance letters, enforces real property tax payments, updates all real property tax collection records and manages the auction of properties that are delinquent in the payment of property taxes.
INDIVIDUAL INCOME TAX Individuals who are bona fide residents of the Virgin Islands file Form 1040 with the Virgin Islands and pay tax on their worldwide income to the Virgin Islands.