To amend the Internal Revenue Code of 1986 to provide that certain bona fide residents of the Virgin Islands who are shareholders of corporations organized under the laws of the Virgin Islands are not treated as United States persons for purposes of determining certain inclusions in gross income with respect to such corporations.

Bill: 117-hr-1427
Sponsor: full_name: Del. Plaskett, Stacey E. [D-VI-At Large]
Introduced: 2021-02-26
Policy area: Taxation
Subjects: Income tax rates

Tax administration and collection, taxpayers

U.S. territories and protectorates

Virgin Islands
Latest action: action_date: 2021-02-26
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2021-02-26
action_desc: Introduced in House
text: <p>This bill sets forth a tax rule with respect to certain bona fide residents of the U.S. Virgin Islands who are shareholders of corporations organized under the laws of the Virgin Islands. It provides that such residents shall not be treated as U.S. persons for purposes of determining inclusions in gross income with respect to such corporations.</p>

tv_txt: I 117th CONGRESS 1st Session H. R. 1427 IN THE HOUSE OF REPRESENTATIVES February 26, 2021 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 provide that certain bona fide residents of the Virgin Islands who are shareholders of corporations organized under the laws of the Virgin Islands are not treated as United States persons for purposes of determining certain inclusions in gross income with respect to such corporations.

1. Certain bona fide residents of Virgin Islands not treated as United States shareholders of corporations organized in the Virgin Islands (a) In general Section 957(c) of the Internal Revenue Code of 1986 is amended by striking and at the end of paragraph (1), by redesignating paragraph (2) as paragraph (3), and by inserting after paragraph (1) the following new paragraph: (2) with respect to a corporation organized under the laws of the Virgin Islands, such term does not include an individual who is a bona fide resident of the Virgin Islands, if a dividend received by such individual during the taxable year from such corporation would, for purposes of section 934(b)(1), be treated as income derived from sources within the Virgin Islands, and . (b) Conforming amendment Section 957(c) of such Code is amended by striking paragraph (2) in the last sentence and inserting paragraph (3) . (c) Effective date The amendments made by this section shall apply to taxable years of foreign corporations beginning after December 31, 2020, and taxable years of individuals within which or with which such taxable years of foreign corporations end.