Tax Savings & Capital Preservation

Tax Savings & Capital Preservation

Taxes are rising, whether corporate, Sub-chapter S or personal and both Federal or state. Sources of working capital have become scarce, whether through equity placements or bank or non-bank debt. How do you protect net margins and permit funds generated internally to grow? Thanks to a little known ruling issued by the Treasury in April 2008, it is now possible to operate under US law, improve the quality of eCommerce infrastructure through the superior bandwidth infrastructure in the USVI and save up to 90% off of customary Federal rates.

The Treasury’s permanent regulations clarify source income treatment for certain knowledge-based businesses, facilitating ecommerce and software intellectual property models in the US Virgin Islands. VI residents are exempt from US taxes and, to spur economic development, the VI Bureau of Revenue offers up to 90% off of mirrored US rates and a low 4% rate on dividends and royalties generated in the USVI.

How To Qualify For UVIRTPark Tenancy:

Create a corporation or subsidiary in the United States Virgin Islands
Establish development and/or operations in authorized data facilities
Distribute licensed, digital intellectual property from RTPark data center facility
Meet specific UVIRTPark requirements

But what type of economic activity qualifies? All of the below and many more knowledge-based businesses:

Newsletter providers – health, investment, travel, etc
Software As Service for such applications as customer relationship management, video conferencing, HR, web analytics, accounting, etc
Games online
Ringtones and music subscriptions
Digital photo hosting and licensing
Online education and tutorials
Research report creation and hosting
Ad serving for online marketing
Medical device developers
Online dating and matchmaking services
Video streaming
Customer support
Other knowledge-based businesses

IRS Circular 230 Notice

In compliance with U.S. Treasury regulations, please be advised that ecommerceisland.com does not provide tax advice to any persons or entities and that communication provided herein (or in any attachment) was not intended or written to be used, and cannot be used, for the purpose of (1) avoiding tax penalties or (2) promoting, marketing or recommending to another person any transaction or matter addressed herein.