What Are the Taxes in the Virgin Islands?
The U.S. Virgin Islands uses a system of taxation that is referred to as the “Mirror Code,” meaning that the taxpayers in this region essentially pay taxes to the local Bureau of Internal Revenue much like how U.S. taxpayers would do the same to the IRS.
Taxes imposed on residents of the Virgin Islands include federal income tax and property tax. However, there is no state tax in the U.S.V.I. Moreover, employers are required to remove social security, medicare, and income tax from employee pay.
At the end of every tax year, even if you are not a current resident of the Virgin Islands, you will still be legally obligated to file identical tax returns with the Virgin Islands. This is based on if you have income that comes from the Virgin Islands or income that has essentially been derived from conducting trade or business within that same region.
Where Can I Get Virgin Islands Tax Forms?
Before you can file, you’ll need Virgin Islands tax forms from the financial institutions with which you have accounts. These forms cover important details, such as how much money you made or lost from investments, how much interest earned in your savings accounts, and the number of distributions that have been removed from retirement accounts.
You’ll also need tax forms that effectively detail your earned income and all the taxes you paid in the past. The most commonly used form is the W-2, and in most cases, your employers and financial institutions will often mail copies of these forms to you.
However, these days it’s much easier to simply head to the Virgin Islands Bureau of Internal Revenue website and you will find the forms you need there. Alternatively, you can head to CocoSign’s Virgin Islands tax forms page and download the relevant forms from there as well.
How Do I File My Virgin Islands Taxes?
Generally, instead of filing returns and paying taxes to the IRS, residents of the Virgin Islands and corporations formed in the Virgin Islands file returns and pay income taxes directly to the Virgin Islands Bureau of Internal Revenue. The U.S. Virgin Islands have their own system in place in regards to collecting taxes but it is still based on the laws of the US tax system.
All individuals or corporations residing and conducting business in the Virgin Islands must submit their corporate annual reports, franchise tax annual reports, and supporting financial statements including a general balance sheet and profit and loss statement online.
These reports are due annually and must be filed on or before June 30th, including the year of formation or registration. In regards to the filing, you can contact the local Bureau of Internal Revenue for more details on how to do this.
However, you can also download any of the relevant tax forms that you may need from CocoSign. But you will still need to print and sign them, before mailing them to the IRS. This is because the IRS does not accept e-filed returns from addresses based in the Virgin Islands and other US Protectorates.