2019 US Virgin Islands Code
Title 13 - Corporations and Associations
Chapter 12 - Virgin Islands Foreign Sales Corporation
§ 770. Definitions
- For the purposes of this chapter:
- “Director” means the Director of the Virgin Islands Bureau of Internal Revenue; “Virgin Islands foreign sales corporation”, and “VIFSC” mean a corporation that elects to be treated as such pursuant to section 772 of this chapter; “Foreign trade income” means income which is:
(1) foreign trade income as defined in Subpart E of Part III of subchapter N of the Internal Revenue Code; and
(2) gross income of a VIFSC attributable to non-Virgin Islands trading gross receipts;
(1) income derived from or related to the non-Virgin Islands trading gross receipts of the VIFSC, including but not limited to, penalties, forfeitures, accelerated lease payments, payments in lieu of lease payments, liquidated damages, payments on default, guarantees, indemnities, and the like;
(2) other payments received by a lessor under, or in connection with, a long-term lease of all or substantially all its non-Virgin Islands export property, or from the sale, exchange, or other disposition of such leased non-Virgin Islands export property; and
(3) such other income as the Director shall by regulation designate.
(1) from the sale, exchange or other disposition of non-Virgin Islands export property for direct use, consumption or disposition outside the Virgin Islands; or
(2) from the lease or rental of non-Virgin Islands export property for use by the lessee outside the Virgin Islands:
(3) for services that are related and subsidiary to:
(A) any sale, exchange, or other disposition of non-Virgin Islands export property by such corporation;
(B) any lease or rental of non-Virgin Islands export property for use by the lessee outside the Virgin Islands;
(4) for engineering or architectural services for construction projects located, or proposed for location, outside the Virgin Islands; or
(5) for the performance of managerial services for a person other than a related person in furtherance of the production of non-Virgin Islands trading gross receipts described in item (1), (2), or (3) of this definition: Provided, that this item (5) shall not apply to a VIFSC for any taxable year unless at least fifty percent (50%) of its non-Virgin Islands trading gross receipts, determined without regards for this sentence, for such taxable year are derived from activities described in items (1), (2), and (3) of this definition; and
(1) qualified export property as defined in Subpart E of Part III of subchapter N of the Internal Revenue Code; and
(2) property held for sale, lease, or rental, in the ordinary course of trade or business, by, or to, an VIFSC, for direct use, consumption, or disposition outside the Virgin Islands.
- “Director” means the Director of the Virgin Islands Bureau of Internal Revenue; “Virgin Islands foreign sales corporation”, and “VIFSC” mean a corporation that elects to be treated as such pursuant to section 772 of this chapter; “Foreign trade income” means income which is:
