2019 US Virgin Islands Code
Title 13 - Corporations and Associations
Chapter 5 - Corporation Franchise Tax
§ 531. Rate and computation of franchise tax
(a) Every corporation incorporated under the laws of the United States Virgin Islands and every foreign corporation qualified to do or doing business in the United States Virgin Islands shall pay to the Lieutenant Governor for the use of the Government of the United States Virgin Islands, a franchise tax of $1.50 for each thousand dollars of stock, capital, and paid in capital stock used in conducting business in the United States Virgin Islands.
(b) Notwithstanding the definition in section 100 of this title, for purposes of computing franchise taxes, the term, “capital stock”, includes the stated value of all classes of stock authorized, issued, and outstanding, plus the paid in capital in excess of stated value. “Paid in capital” means the cash and other consideration received less expenses, including commissions paid or incurred by the entity, in connection with the issuance of its shares, plus amounts transferred to paid-in capital by action of the board of directors or shareholders pursuant to a share dividend, share split, or otherwise, and plus the amount of capital paid in that is in excess of the stated par value of any class of stock.
(c) For computation of taxes owed in accordance with paragraphs (a) and (b), the minimum franchise tax is $300 for any corporation whose capital stock used in conducting business in the United States Virgin Islands is no more than $250,000.
(d) In no case shall the tax on any corporation for a full taxable year, computed by paragraphs (a) and (b) of this section be more than $150,000 for any entity whose capital stock used in conducting business in the United States Virgin Islands exceeds $250,000.
(e) The franchise tax for a V.I. foreign sales corporation is $500. A full year’s tax must be collected for any portion of a year.
(f) Effective January 1, 1989, the franchise tax required by this section shall be filed and paid, together with the filing of the annual report and annual franchise tax report on a form prescribed by the Lieutenant Governor, on or before June 30 of each calendar year, however the first year's estimated tax shall be collected from any corporation except a V.I. foreign sales corporation, in advance, at the time of the corporation's initial incorporation or qualification to do business in the Virgin Islands.
(g) In connection with bonds, obligations or rights issued or granted by the Government, in connection with the Virgin Islands Hurricane Hugo Insurance Claims Fund Program pursuant to Title 22, chapter 10a of this code, the Governor by written declarations or declaration may direct that, so long as such bond, obligations or rights are outstanding, the franchise tax required by this section shall be deposited, upon collection or thereafter, into the Virgin Islands Hurricane Hugo Insurance Claims Fund created pursuant to Title 33, chapter 111, section 3061a, of this code.
(h) In connection with the bonds, notes or other evidences of indebtedness issued by the Government pursuant to Act No. 5883 (Bill No. 20–0164), section 5, as amended, the Governor by written declarations or declaration may direct that, so long as such bonds, notes or other evidences of indebtedness issued are outstanding, all or any portion of the franchise tax required by this section collected in excess of the amounts necessary to make payment on bonds issued pursuant to Title 22, chapter 10a, Virgin Islands Code, shall be deposited, upon collection or thereafter, into the St. Croix Economic Development Fund.
