Plain English
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Territorial Tax Parity and Clarification Act This bill authorizes the Internal Revenue Service (IRS) to limit the income tax payment to the Virgin Islands required to treat income from the sale of certain personal property as foreign-sourced income for federal tax purposes. As background, income from certain personal property sales from a fixed place of business in a U.S. territory by a U.S. resident may be U.S.-sourced income unless an income tax of at least 10% is paid to the U.S. territory. Under current law, the IRS may limit the 10% tax payment requirement related to income from such personal property sales in Guam, American Samoa, the Northern Mariana Islands, and Puerto Rico. This bill expands the IRS’s authority to include limiting the tax requirement for personal property sales in the Virgin Islands.
Market Impact Map
Action Timeline
2025-01-13
Referred to the House Committee on Ways and Means.
2025-01-13
Introduced in House
2025-01-13
Introduced in House
Full Bill Text
119 HR 367 IH: Territorial Tax Parity and Clarification Act U.S. House of Representatives 2025-01-13 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I 119th CONGRESS 1st Session H. R. 367 IN THE HOUSE OF REPRESENTATIVES January 13, 2025 Ms. Plaskett introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to modify the source rules for personal property sales in possessions of the United States. 1. Short title This Act may be cited as the Territorial Tax Parity and Clarification Act . 2. Modification of source rules for personal property sales in possessions (a) In general Section 865(j)(3) of the Internal Revenue Code of 1986 is amended by inserting , 932, after 931 . (b) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2023.
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