81.4 F
Cruz Bay
Tuesday, March 28, 2023
HomeNewsArchivesE-Commerce Clarification Good News for Territory

E-Commerce Clarification Good News for Territory

Sept. 18, 2006 – The U.S. Treasury Department on Monday clarified a provision in its code concerning e-commerce income.
"This is a big break for the territory," said David Zumwalt, director of the V.I. Research and Technology Park.
The issue is extremely complicated, but Zumwalt said it essentially says that businesses located in the territory pay taxes in the Virgin Islands even though their customers are located elsewhere.
The territory's Economic Development Commission tax benefits program has been under the gun for the past couple of years after the Treasury Department tightened its rules regarding residency and source of income, a mandate from the U.S. Congress.
This followed allegations of abuse by some EDC program recipients.
Zumwalt said ever since, government officials have worked hard to restore the program. He said the clarification would enhance the Research and Technology Park's ability to attract companies to its facility.
According to Auguste E. Rimpel Jr., chairman of the Research and Technology Park board of directors, the clarification allows the park to leverage the territory's assets and resources to broaden the economy.
"It adds yet one more noteworthy reason for technology-based businesses to consider the USVI in any corporate relocation or expansion plans," Rimpel said in a news release Monday.
The Research and Technology Park, a venture of the University of the Virgin Islands, is expected to serve as a center for e-commerce and technology, and to boost the territory's economy.
The Treasury's clarification appears as Notice 2007-76 in the Internal Revenue Bulletin 2006-38 issued Monday.
The full clarification is available at www.irs.gov/businesses/lists/0,,id=98230,00.html. Click on 2006-38. The pertinent information is on pages 459 and 460.

Back Talk

Share your reaction to this news with other Source readers. Please include headline, your name and city and state/country or island where you reside.

Print Friendly, PDF & Email
Keeping our community informed is our top priority.
If you have a news tip to share, please call or text us at 340-228-8784.

Support local + independent journalism in the U.S. Virgin Islands

Unlike many news organizations, we haven't put up a paywall – we want to keep our journalism as accessible as we can. Our independent journalism costs time, money and hard work to keep you informed, but we do it because we believe that it matters. We know that informed communities are empowered ones. If you appreciate our reporting and want to help make our future more secure, please consider donating.