Territorial Tax Parity and Fairness Act

Sponsor: Stacey E. Plaskett (Democratic-VI)January 13, 2025

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

Referred to the House Committee on Ways and Means.

Lets some Virgin Islands residents pay less U.S. tax on local company earnings.

This bill would change tax rules for certain people living in the U.S. Virgin Islands. It would let Virgin Islands residents who own local companies avoid being seen as "United States persons" for some tax purposes. This applies if their company dividends are considered Virgin Islands income. This could reduce the U.S. taxes they owe on income from those companies, starting with the 2025 tax year.

What Would Change

Currently, certain Virgin Islands residents who own local companies are treated as "United States persons" for specific income tax calculations. If this bill passes, these residents would no longer be treated this way for those calculations. This would happen if their company dividends are considered Virgin Islands income. This change would apply to company tax years starting after December 31, 2024.

Key Provisions

Lets certain Virgin Islands residents avoid being treated as "United States persons" for specific income tax calculations on their local company earnings.
This applies if dividends received by the individual from the corporation are considered income from within the Virgin Islands.
Applies these new tax rules to company tax years starting after December 31, 2024.

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HR 368 · 119th Congress · January 13, 2025 · AI Summary by gemini-2.5-flash · 10/10

Territorial Tax Parity and Fairness Act

What Would Change

Key Provisions

Lobbying Activity