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Virgin Islands Economic Development Authority 2021 Revenue Estimating Conference August 10, 2021 The Buccaneer Hotel VIEDC Beneficiary Virgin Islands Economic Development Commission Fiscal Years 2022 -20 26 Re ve n u e P roje ction s Tram w ay P rop e rtie s, In c. VIEDC Be n e ficiary The International Economic De ve lop m e n t Cou n cil (IEDC) d e fin e s e con om ic d e ve lop m e n t “as a p rog ram , g rou p of p olicie s, or activity th at se e ks to im p rove th e e con om ic w e ll-b e in g an d q u ality of life for a com m u n ity, b y cre atin g an d /or re tain in g job s th at facilitate g row th , e n h an ce w e alth an d p rovid e a stab le tax b ase .” Bu sin e ss In ve stm e n t Hou se h old s Em p loym e n t Lan d Cap ital En tre p re n e u rsh ip Good s Se rvice s W ag e s Re n ts In te re sts P rofits WHAT IS ECONOMIC DEVELOPMENT? Alp in e Grou p USVI, LLC VIEDC Be n e ficiary 10% Income Tax P aid to th e Te rritory Cap ital In ve stm e n ts Ch aritab le Con trib u tion s Em p loym e n t W ag e s & Be n e fits for VI Re sid e n ts 10 0 % In com e Tax on Glob al In com e FACT Tax in ce n tive s are in te n d e d to sp u r e con om ic g row th th at w ou ld n ot h ave oth e rw ise occu rre d . Th e Te rritory starts at a n e t ze ro p osition BENEFITS TO THE TERRITORY BENEFICIARIES MUST PAY NOTE ON INCOME TAX Effe ctive Tax Rate : 2.3% (b ase d on tax rate of 21% an d 10 % su rch arg e ) 10% on VIEDC Corporate Income Effe ctive Tax Rate : 3.7% (b ase d on e xe m p tion an d p artial e xe m p tion as p rovid e d in 29 V.I.C. Ȁ713d on Distrib u tion s, Divid e n d s an d /or In te re st W ith h old in g ) 10% on VIEDC Personal Income Fu ll Tax Rate on Glob al Non -VIEDC P e rson al In com e No tax-in ce n tive /b e n e fits are take n on in com e d e rive d from se rvice s p rovid e d in th e USVI (De sig n ate d Se rvice s) Income Tax Payroll Tax Property Tax Franchise Tax Stamp Tax All oth e r ap p licab le taxe s n ot cove re d u n d e r th e g ran t of in ce n tive s m u st also b e p aid . Minimum Capital In ve stm e n t of $10 0 ,0 0 0 BENEFITS TO THE TERRITORY P u rch ase Good s an d Se rvice s Locally from Virg in Islan d s Bu sin e sse s LOCAL INVESTMENT BENEFITS TO THE TERRITORY EMPLOYMENT Hire a Min im u m of 5 (Fin an cial Se rvice s on ly) or 10 Fu ll-tim e Em p loye e s 80 % of Fu ll-tim e P osition s Fille d b y Virg in Islan d s Re sid e n ts Man ag e m e n t Train in g P rog ram s Tu ition Re im b u rse m e n t 20 % Man ag e m e n t / Su p e rvisory / Te ch n ical P osition s Fille d b y Virg in Islan d s Re sid e n ts P e n sion P lan , Me d ical In su ran ce an d P aid Tim e Off (Vacation , Sick, Don ate d , & Oth e r Le ave Re q u ire d b y Law ) Un ite d Ele ctron ic In d u strie s Se rvice s, LLC VIEDC Be n e ficiary BENEFITS TO THE TERRITORY STATUTORY REQUIREMENTS & CHARITABLE CONTRIBUTIONS Con trib u tion of $30 0 0 An n u ally to th e Board of Ed u cation Con trib u tion of $250 0 An n u ally to th e De p artm e n t of Lab or Ch aritab le Con trib u tion s An n u ally to Local Non -p rofits, 50 1(c)3 En titie s an d /or Gove rn m e n t P rog ram s Ed u cation Assistan ce , In clu d in g In te rn sh ip Op p ortu n itie s an d Sch olarsh ip s Alp in e Grou p USVI, LLC VIEDC Be n e ficiary HISTORICAL NEW APPLICANT STATISTICS International Private Bank, LLC VIEDC Be n e ficiary Data as of Ju n e 30 , 20 21 Plessen Healthcare, LLC VIEDC Be n e ficiary Data as of Ju n e 30 , 20 21 Full -Time Equivalent Jobs Average: 6,436/year Charitable Contributions Average: $3.23M/year Taxes and Duties Paid Average: $103M/year Wages & Salaries Average: $339M/year Territory -Wide Economic Output Average: $500M/year ECONOMIC IMPACT ANALYSIS Im p act of th e Be n e ficiarie s of th e EDC P rog ram for th e P e riod 20 13-20 15 19.3 THOUSAND $9.7 MILLION $309 MILLION $1 BILLION $1.5 BILLION Se ve n Se as W ate r Corp oration (USVI) VIEDC Be n e ficiary Sou rce : USVIEDA Econ om ic Im p act An alysis con d u cte d b y UVI's In stitu te for Le ad e rsh ip & Org an ization al Effe ctive n e ss (20 19) TOTAL TAXES & DUTIES PAID 2014-20 18 STATISTICS Th e ave rag e an n u al taxe s an d d u tie s p aid from 20 14 -20 18 w as $98.2 m illion . Le ath e rb ack Bre w in g Com p an y, LLC VIEDC Be n e ficiary FISCAL IMPACT TO THE USVI ECONOMY Total Taxes Paid By VIEDC Beneficiaries Taxes Paid on Global Income by Principals USVI Economy Year 1 = $5M FY 2022-2026 ANTICIPATED REVENUES Over Next Five Years Year 2 = $10M Year 3 = $15M Year 4 = $20M Year 5 = $25M www.usvieda.org 34 0 .714 .170 0 34 0 .773.64 99 CONTACT US in fo@u svie d a.org