The Bureau has jurisdiction over all internal revenue taxes of the Virgin Islands, including income, gross receipts, excise, highway user’s, hotel room, entertainment and fuel taxes. The Naval Service Appropriation Act of 1922 established a “mirror” system of taxation in the Virgin Islands for income tax purposes, so that the Internal Revenue Code applies by substituting the Virgin Islands for the United States wherever necessary to give the Internal Revenue Code its unique status in the Virgin Islands. This mechanism provides the Territory with a sophisticated income tax system. Administratively, the Bureau benefits from the multitude of forms, regulations, and other printed guidance available from the Internal Revenue Service. The V.I. mirrored income tax system necessitates an on-going working relationship with the Internal Revenue Service and the United States Department of the Treasury. The Virgin Islands must be cognizant and prepared whenever the Congress contemplates or enacts changes to the Internal Revenue Code which must be implemented within the Territory.

The Virgin Islands Bureau of Internal Revenue was created in August of 1980 by Act No. 4473, and was later amended by Act No. 4479 in September of the same year. Subsequent changes to the operation of the Bureau were made by Act No. 6086, on November 9, 1995. The Bureau was created as a separate independent Agency of the Government of the Virgin Islands and maintains its principal office on St. Thomas, a fully staffed branch office on St. Croix and a satellite office on St. John. The Bureau is under the supervision of a Director, with a Deputy Director located in each District. A Department Chief oversees the operations of the four (4) main branches of the Bureau. The main branches are: Processing, Delinquent Accounts and Returns, Audit, and Computer Operations.

The Bureau’s strategic goals are to promote voluntary compliance with the internal revenue tax laws and to collect the tax revenues owed to the Government of the Virgin Islands. All four (4) branches of the Bureau are dedicated to ensuring the achievement of these two (2) goals.

A knowledgeable staff and up-to-date tax administration system are critical to the Bureau’s operations. Improving the quality of service to taxpayers requires an investment in human resources and the technological support structure. The Bureau must continue to provide training to its employees, maintain and attract competent employees, and invest in its technical support. These are essential obligations that will allow the Bureau to be equipped to administer and enforce the tax laws of the Virgin Islands.