119-hr368

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 368 Introduced in House

    (IH) ]

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119th CONGRESS
 1st Session
 H. R. 368

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.

_______________________________________________________________________

 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 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.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Territorial Tax Parity and Fairness 
Act''.

SEC. 2. CERTAIN BONA FIDE RESIDENTS OF 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, 2024, and taxable years of individuals within which or with which 
such taxable years of foreign corporations end.
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