FAQ
What is eCommerce Island?
ECommerce Island is St. Croix, the largest island in U.S. Virgin Islands, where superior infrastructure and tax benefits under the U.S. flag make an ideal new home for your eCommerce business. Under the U.S. Treasury’s permanent regulations, the VI Bureau of Revenue offers up to 90% off of mirrored U.S. rates and a 4% rate on dividends and royalties generated in the USVI.
Your host, the RTPark, is located within the NSA-standard Global Crossing facility where the global subsea Tier-1 fiber networks make landfall to create the second largest concentration of bandwidth in the western hemisphere. Our strategic partners ensure smooth operations and benefits you won’t receive anywhere else, such as multiple redundancies to ensure quality connections.
As a territory of the United States with close proximity to the US mainland, the USVI helps you leverage near shore benefits, including protecting your intellectual property under the US flag and federal law and corporate tax incentives.
Are businesses in the US Virgin Islands subject to US taxes?
No, the Virgin Islands benefit from a mirror tax law under which Virgin Islands taxpayers calculate their taxes based on the U.S. Tax Code but pay them to the Virgin Islands Government. Congress has long authorized the Virgin Islands Government to grant tax exemptions in certain areas to encourage development. To this end, the U.S. Virgin Islands Government has worked closely with the federal government to develop a comprehensive legislative and regulatory scheme to encourage eCommerce activity in the Territory.
How is the RTPark associated with the government of the Virgin Islands and the University of the Virgin Islands?
The RTPark is a separate entity of the Virgin Islands government fostered by the University of the Virgin Islands. Comprehensive information is available on the RTPark’s website.
What are the benefits of becoming a tenant of the RTPark?
Many! The RTPark is located inside the Global Crossing facility which is constructed and firewalled to NSA standards to withstand any interruptions from natural disasters, power outages or cyber attacks. The facility is at the nexus of the second largest collection of bandwidth in the western hemisphere. Strategic partner Adveniat can host your servers, JetPay can process your transactions, Global Crossing can provide telecommunications service and the University of the Virgin Islands can provide new graduates and student interns.
Moreover, a “protected cell” eCommerce tenant of the RTPark is extended many tax reductions including:
- Up to 90% in the equivalent reduction in corporate income tax
- Tax savings available for 10 to15 years
- Benefits renewable for 10-year period
- 100% Gross Receipts Tax Exemption
- 100% Property Tax Exemption
- 100% Excise Tax Benefits
- 1% Custom Duties
What kind of infrastructure and amenities are available in the USVI?
Besides the tropical splendor and bandwidth infrastructure, the USVI operates under US law, patent and copyright protection, banking laws and FDIC insurance. You are just a few hours away from the mainland by air from most major US cities. There are two international airports and multiple deep water ports for cargo. White sandy beaches, clear blue skies and temperate waters create a near perfect environment for almost every water sport. The proximity of a myriad of neighboring islands provides the opportunity to explore new cultures.
Am I required to use the strategic partners for business services?
The partners are an integral part of the RTPark and carefully chosen to both meet your needs and create a USVI-sourced transaction which qualifies for tax benefits.