H.R. 858
119th CONGRESS 1st Session
To amend the Internal Revenue Code of 1986 to determine global intangible low-taxed income without regard to certain income derived from services performed in the Virgin Islands.
IN THE HOUSE OF REPRESENTATIVES · January 31, 2025 · Sponsor: Mr. Estes · Committee: Committee on Ways and Means
Table of contents
SEC. 1. Short title
- This Act may be cited as the or the .
SEC. 2. Global intangible low-taxed income determined without regard to certain income derived from services performed in the Virgin Islands
- (a) In general
- of the Internal Revenue Code of 1986 is amended by striking at the end of subclause (IV), by striking the period at the end of subclause (V) and inserting
, and, and by adding at the end the following new subclause: Section 951A(c)(2)(A)(i)- in the case of any specified United States shareholder, any qualified Virgin Islands services income.
- of the Internal Revenue Code of 1986 is amended by striking at the end of subclause (IV), by striking the period at the end of subclause (V) and inserting
- (b) Definitions and special rules
- Section 951A(c)(2) of such Code is amended by adding at the end the following new subparagraph:
- (C) Provisions related to qualified Virgin Islands services income
- For purposes of subparagraph (A)(i)(VI)—
- (i) The term means any gross income which satisfies all of the following requirements:
qualified Virgin Islands services income - Such gross income is compensation for labor or personal services (within the meaning of section 862(a)(3)) performed in the Virgin Islands by a corporation formed under the laws of the Virgin Islands.
- Such gross income is attributable to services performed from within the Virgin Islands by individuals for the benefit of such corporation.
- Such gross income is effectively connected with the conduct of a trade or business within the Virgin Islands.
- (ii) The term means any United States shareholder which is—
specified United States shareholder - an individual, trust, or estate, or
- a closely held C corporation (as defined in section 469(j)(1)) if such corporation acquired its direct or indirect equity interest in the foreign corporation which derived the qualified Virgin Islands services income before December 31, 2023.
- (iii) The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out this subparagraph and subparagraph (A)(i)(VI), including regulations or other guidance to prevent the abuse of such subparagraphs.
- (i) The term means any gross income which satisfies all of the following requirements:
- For purposes of subparagraph (A)(i)(VI)—
- (C) Provisions related to qualified Virgin Islands services income
- Section 951A(c)(2) of such Code is amended by adding at the end the following new subparagraph:
- (c) Effective date
- The amendments made by this section shall apply to taxable years of foreign corporations beginning after the date of the enactment of this Act, and to taxable years of United States shareholders with or within which such taxable years of foreign corporations end.