Amended 1976, 1982, 1984, 1986
- 1986 Pub. L. 99-514 Pub. L. 99–514, § 1275(c)(1), struck out subsec. (c) which provided an exception to subsec. (a) of this section for individual citizens of the United States residing in the Virgin Islands to the extent their income is derived from sources within the Virgin Islands.
- 1986 Pub. L. 99-514 Pub. L. 99–514, § 1275(c)(1), struck out subsec. (d) which related to requirement to supply information.
- 1986 Pub. L. 99-514 Pub. L. 99–514, § 1275(a)(2)(A), struck out subsec. (e) which provided for tax treatment of intangible property income of certain domestic corporations.
- 1986 Pub. L. 99-514 Pub. L. 99–514, § 1275(a)(2)(A), struck out subsec. (f) which provided a transitional rule for applying subsec. (b)(2) of this section with respect to taxable years beginning after Dec. 31, 1982, and before Jan. 1, 1985.
- 1986 Pub. L. 99-514 Pub. L. 99–514, § 1876(f)(2), struck out subsec. (f) which provided that subsec. (a) of this section not apply in the case of a Virgin Islands corporation which is a FSC.
- 1984 Pub. L. 98-369 Pub. L. 98–369 added subsec. (f) relating to FSC.
- 1982 Pub. L. 97-248 Pub. L. 97–248, § 213(b)(2), added subsec. (e).
- 1982 Pub. L. 97-248 Pub. L. 97–248, § 213(b)(2), added a temporary subsec. (f) which provided that in applying subsec. (b)(2) with respect to taxable years beginning after December 31, 1982, and before January 1, 1985, “55 percent” shall be substituted for “65 percent” for taxable years beginning in calendar year 1983 and “60 percent” shall be substituted for “65 percent” for taxable years beginning in calendar year 1984.
- 1976 Pub. L. 94-455 Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary” in two places.
Cases: HMW Industries v. Wheatley, 504 F.2d 146 (3rd Cir. 1974)
Final rules 2
(a) General rule Tax liability incurred to the Virgin Islands pursuant to this subtitle, as made applicable in the Virgin Islands by the Act entitled “An Act making appropriations for the naval service for the fiscal year ending June 30, 1922, and for other purposes”, approved July 12, 1921 (48 U.S.C. 1397), or pursuant to section 28(a) of the Revised Organic Act of the Virgin Islands, approved July 22, 1954 (48 U.S.C. 1642), shall not be reduced or remitted in any way, directly or indirectly, whether by grant, subsidy, or other similar payment, by any law enacted in the Virgin Islands, except to the extent provided in subsection (b).
Amended 1983, 1986
- 1986 Pub. L. 99-514 Pub. L. 99–514, § 1275(c)(2)(A), struck out “or (c) or in section 934A” after “subsection (b)”.
- 1983 Pub. L. 97-455 Pub. L. 97–455 inserted “or in section 934A” after “subsection (b) or (c)”.
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(b) Reductions permitted with respect to certain income
Amended 1976, 1986
- 1986 Pub. L. 99-514 Pub. L. 99–514, § 1275(c)(1), (2)(B), added subsec. (b) and struck out former subsec. (b) which excepted from subsec. (a) domestic or Virgin Islands corporations to the extent they derived income from sources without the United States under certain conditions.
- 1976 Pub. L. 94-455 Pub. L. 94–455, § 1901(a)(118), struck out “For the purposes of this subsection, all amounts received by such corporation within the United States, whether derived from sources within or without the United States, shall be considered as being derived from sources within the United States”.
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(1) In general Except as provided in paragraph (2), subsection (a) shall not apply with respect to so much of the tax liability referred to in subsection (a) as is attributable to income derived from sources within the Virgin Islands or income effectively connected with the conduct of a trade or business within the Virgin Islands.
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(2) Exception for liability paid by citizens or residents of the United States Paragraph (1) shall not apply to any liability payable to the Virgin Islands under section 932(b).
Amended 1982
- 1982 Pub. L. 97-248 Pub. L. 97–248, § 213(b)(1), substituted “65 percent” for “50 percent”.
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(3) Special rule for non-United States income of certain foreign corporations
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(A) In general In the case of a qualified foreign corporation, subsection (a) shall not apply with respect to so much of the tax liability referred to in subsection (a) as is attributable to income which is derived from sources outside the United States and which is not effectively connected with the conduct of a trade or business within the United States.
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(B) Qualified foreign corporation For purposes of subparagraph (A), the term “qualified foreign corporation” means any foreign corporation if less than 10 percent of—
(i) the total voting power of the stock of such corporation, and
(ii) the total value of the stock of such corporation, is owned or treated as owned (within the meaning of section 958) by 1 or more United States persons.
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(4) Determination of income source, etc. The determination as to whether income is derived from sources within the United States or is effectively connected with the conduct of a trade or business within the United States shall be made under regulations prescribed by the Secretary.
Amended 2004
- 2004 Pub. L. 108-357 Pub. L. 108–357 struck out “the Virgin Islands or” before “the United States” in two places.