Amadeusz Juskowiak

Us signs tax treaty with virgin islands

The Treasury Department said the United States and the Virgin Islands have signed a tax treaty to exchange tax information and provide mutual assistance in tax matters

The agreement was needed to trigger provisions of the Tax Reform Act of 1986 allowing the Virgin Islands to offer investment incentives by reducing Virgin Islands taxes on nonUS source income the Treasury said

The treaty will be a model for similar agreements to be negotiated with three other US possessions American Samoa the Mariana Islands and Guam the Treasury said

The new agreement which expands and replaces a prior agreement with the Virgin Islands was signed on February 24 the Treasury said