V.I. Code tit. 29, § 713d (2019)
2019 US Virgin Islands Code|Title 29 - Public Planning and Development|Chapter 12 - Economic Development and Incentives|Subchapter I - Economic Development Program|§ 713d. Exemption and partial exemption of tax on interest and dividends; withholding

 (a) Every person who receives a payment of dividends or interest subject to the tax imposed by section 871(a)(1) or 881 of the Internal Revenue Code (as it applies in the Virgin Islands) from an applicant granted an industrial development certificate as hereunder provided, and every such applicant subject to a tax on a dividend equivalent amount imposed by section 884 of the Internal Revenue Code (as it applies to the Virgin Islands) shall be exempted from the payment of 100% of such tax on interest and of that percentage of such tax on dividends and dividend equivalent amounts as is determined pursuant to subsection (c) of this section, to the extent that such dividends, interest and dividend equivalent amounts are derived from or related to the business or industry for which the said certificate has been granted. (b) An applicant granted an industrial development certificate as hereunder provided shall be exempted from the requirement to withhold tax pursuant to sections 1441 and 1442 of the Internal Revenue Code (as it applies in the Virgin Islands) with respect to the payments and dividend equivalent amounts referred to in subsection (a) of this section to the extent that such payments and dividend equivalent amounts are exempt from the tax described in said subsection. (c)  (1) The percentage of exemption from tax on dividends and dividend equivalent amounts referred to in subsection (a) of this section shall be 60% unless the conditions of paragraph (2) of this subsection are met, in which case the percentage shall be 80%. (2) The percentage of exemption of 80% shall apply with respect to the tax on dividends and dividend equivalent amounts paid by an applicant granted an industrial development certificate who, at any time from the beginning of each taxable year that the certificate is in effect, but not later than ninety (90) days after the date of filing of the corresponding income tax return for such taxable year, places, invests, and maintains, for a fixed term of not less than (5) years, not less than fifty percent (50%) of its net income derived from the business or industry for which an industrial development certificate has been granted for such year after the payment of the taxes provided by law, in the payment of the balance of the principal of any debt by law, in the payment of the incurred by the applicant for the acquisition of property to be devoted to said business or industry or in any of the following: (A) obligations of the Government of the Virgin Islands or any of its instrumentalities; (B) mortgage loans or loans guaranteed by an instrumentality or agency of the Government of the Virgin Islands or of the Government of the United States for the financing of the construction or acquisition or improvement of housing in the Virgin Islands; (C) loans for the construction, expansion or purchase of industrial buildings or industrial land, and for the acquisition of machinery and equipment or working capital utilized in businesses or industries granted industrial development benefits; (D) loans of the Virgin Islands Economic Development Bank; (E) commercial loans in excess of one million dollars made to Virgin Islands borrowers or borrowers in the Virgin Islands that (i) have been rejected by, or not approved within 30 days from the date a written loan application has been made to, any licensed Virgin Islands financial institution; and (ii) bear interest at an interest rate of not less than five percentage points above the Federal Home Loan Mortgage Corporation's posted yield on the last business day of the month on thirty-year standard conventional fixed-rate mortgages committed for delivery within sixty days, rounded to the nearest one-fourth percent, which rate shall take effect (a) on the first day of the immediately subsequent month and continue in effect for the remainder of said month, and (b) apply to all commitments made by a beneficiary during such month. If for any reason, the Federal Home Loan Mortgage Corporation ceases its auction, temporarily or permanently, the index in the preceding sentence shall be based on the Federal Home Loan Bank Board's average monthly contract rate. All existing and future beneficiaries are permitted to make such loans without modification of their certificates; (F) capital contributions in excess of one million dollars made to Virgin Islands business entities or business entities in the Virgin Islands. All existing and future beneficiaries are permitted to make such capital contributions without modification of their certificates. (i) All loans and investments made under subparagraphs (E) and (F) must be registered with the Economic Development Commission within thirty days after the investment or loan was made. (ii) For the purposes of this paragraph, the prime interest rate is determined by the Lieutenant Governor pursuant to title 9, section 183 of the Virgin Islands Code. (iii) All companies wishing to make loans under this section must register with and provide quarterly reports to the Office of the Lieutenant Governor. (G) any other loans, obligations, or investments approved by the Governor and the Legislature of the United States Virgin Islands.