H.R.5039 - Territorial Tax Parity Act of 2016114th Congress (2015-2016)
|Sponsor:||Rep. Plaskett, Stacey E. [D-VI-At Large] (Introduced 04/21/2016)|
|Committees:||House - Ways and Means|
|Latest Action:||04/21/2016 Referred to the House Committee on Ways and Means. (All Actions)|
This bill has the status Introduced
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Summary: H.R.5039 — 114th Congress (2015-2016)All Information (Except Text)
Introduced in House (04/21/2016)
Territorial Tax Parity Act of 2016
This bill amends the Internal Revenue Code to modify the income source rules involving U.S. possessions, including Guam, American Samoa, the Northern Mariana Islands, Puerto Rico, and the Virgin Islands.
Under current law, income is not considered to be possession source income if it is treated as income: (1) from sources within the United States, or (2) effectively connected with the conduct of a trade or business within the United States. The bill amends this rule to specify that it applies to the extent that the income is attributable to an office or fixed place of business within the United States.
The bill also revises the source rules for personal property sales. The Internal Revenue Service may limit the application in the Virgin Islands of requirements for U.S. citizens and resident aliens to pay a tax to a foreign country to be considered a nonresident of the United States for certain personal property sales.