Bill > HR368

This bill aims to modify the U.S. Internal Revenue Code to provide tax fairness for bona fide residents of the U.S. Virgin Islands who own shares in corporations organized under Virgin Islands law. Specifically, the bill changes how these individuals are classified for tax purposes, ensuring that certain Virgin Islands residents will not be considered U.S. persons when determining their income inclusions for tax calculations. Under the proposed amendment, an individual who is a bona fide resident of the Virgin Islands would be excluded from the definition of a U.S. person for a corporation organized in the Virgin Islands, particularly if dividends received from that corporation would be treated as income from sources within the Virgin Islands. The changes would take effect for taxable years of foreign corporations beginning after December 31, 2024, and would apply to the corresponding taxable years of individuals. This legislation is designed to provide more equitable tax treatment for Virgin Islands residents and their locally-organized corporations, recognizing the unique territorial status of the U.S. Virgin Islands.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/368/all-info