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Taxes imposed on residents of the Virgin Islands include: Federal Income Tax (same as US mainland) Property Tax. Employers are required to remove social security, Medicare and income tax from employee pay.
Individual U.S. citizens and permanent residents who are bona fide residents of the Virgin Islands are subject to the same tax rates as are applicable to individuals under the U.S. Internal Revenue Code but they pay their tax on worldwide income to the U.S. Virgin Islands Bureau of Internal Revenue rather than to the
Puerto Rico is an unincorporated territory of the United States and Puerto Ricans are U.S. citizens; however, Puerto Rico is not a U.S. state, but a U.S. insular area. Consequently, while all Puerto Rico residents pay federal taxes, many residents are not required to pay federal income taxes.
Dominica. The Commonwealth of Dominicawhich should not be confused with the Dominican Republicis a pure tax haven with no income tax, corporate tax, or tax imposed on income or capital gains earned outside its jurisdiction. It does not impose any withholding taxes, gift taxes, or estate and inheritance taxes either.
To claim the Foreign Earned Income Exclusion, expats must file IRS Form 2555 along with their Form 1040. Form 2555 asks for confirmation that your tax home is in a foreign country. This means that the place where you work from is abroad, regardless where (or in what currency) you are paid.
To obtain the tax benefit of the Foreign Earned Income Exclusion, expats must file IRS Form 2555 when they file their federal tax return. They must also meet IRS criteria for living abroad to qualify.
There are no local income taxes or surcharges imposed on individuals over and above the mirror system rates so that the overall rate of income tax for individuals is equivalent to the rate that a resident of a state without a state income tax would pay.
More In Forms and Instructions One purpose of the form is to report net earnings from self-employment (SE) to the United States and, if necessary, pay SE tax on that income. The Social Security Administration (SSA) uses this information to figure your benefits under the social security program.
You need to file IRS form 2555 if you want to claim the foreign earned income exclusion. You can claim an exclusion for income you earned abroad if you qualify under the bona fide residence test or the physical presence test and if you have a foreign tax home.
Purpose of Form Use Form 8898 to notify the IRS that you became or ceased to be a bona fide resident of a U.S. possession in accordance with section 937(c). See Bona Fide Residence, later.