PORTFOLIO

Business Operations in the Territories and Possessions of the United States (except Puerto Rico) (Portfolio 995)

Tax Management Portfolio, Business Operations in the Territories and Possessions of the United States (except Puerto Rico), is intended to introduce U.S. and other investors, as well as their advisers, to the tax and other considerations relevant to business operations in the Virgin Islands of the United States, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.

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DESCRIPTION

This Portfolio describes the general legal and political relationships of the several jurisdictions under the authority of the United States which do not have the status of a state, other than Puerto Rico and the District of Columbia. Please see Ríos-Méndez and Alemar-Escabí, 7320 T.M., Business Operations in Puerto Rico. General requirements and considerations in establishing a business are described and the characteristics of the various business entities are set out. The tax structure of each jurisdiction is also included.


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AUTHORS

Business Operations in the Territories and Possessions of the United States (except Puerto Rico) was authored by the following experts.
JOSEPH M. ERWIN
Joseph M. Erwin, University of Arkansas, B.A. (with honors, 1976); Southern Methodist University School of Law, J.D., 1979, LL.M. (Taxation, 1980). Member of the bars of Arkansas, Texas, U.S. Virgin Islands, England & Wales, U.S. Tax Court, U.S. Court of International Trade, U.S. Courts of Appeals for the Second, Third, Fifth, Eighth, and Ninth Circuits. Private law practice, Little Rock, Arkansas (1980–1991); St. Thomas, U.S. Virgin Islands (1994–1996); Dallas, Texas (2003–present). Assistant Attorney General (Tax), U.S. Virgin Islands Department of Justice (1991–1994). Tax Manager, software company, Austin, Texas (1996–1997). Senior Manager, International Corporate Services, KPMG LLP, Austin, Texas (1997–1998), and Dallas, Texas (1998–2000 and 2002–2003); Senior Manager, KPMG Deutsche Treuhand-Gesellschaft AG, U.S. Corporate Tax Group, Frankfurt am Main, Germany (2000–2002).

TABLE OF CONTENTS

Detailed Analysis

I. Introduction - The Territories of the United States

A. Generally

B. Former Territories and Other Lands

1. Territories That Became States

2. Territories Acquired after the Spanish-American War

3. Trust Territory of the Pacific

a. Generally

b. U.S. Taxation of Residents of Former Trust Territory of the Pacific

c. Other Federal Laws Applicable to Former Trust Territories

4. Former Lands

a. The Panama Canal Zone

b. Islands and Other Areas

C. Territorial Lands

1. Islands Claimed Under Guano Islands Act

2. Other Islands and Atolls

II. Authority to Regulate the Territories

A. The Constitution

1. The Constitution, the Northwest Ordinance, and the 50 States

2. The Insular Cases and the Doctrine of Integration

3. Summary of Status of Territories and Possessions

B. Application of Federal Laws to the Territories

1. Generally

2. Taxes by the United States

a. Income Taxes

(1) Individuals

(a) Status of U.S. Individuals

(b) Rules for Determining Residency in a U.S. Territory

(i) Post-2003 Standard for Determining Residency

(A) Physical Presence Test

(B) Tax Home Test

(C) No Closer Connection Test

(ii) Pre-2004 Standard for Determining Residency

(A) The Facts and Circumstances Test

(B) The Draft Regulations on Residency

(iii) Reporting Requirements on Changing Residency in the Possessions

(2) Domestic Versus Foreign Corporations, Partnerships and Trusts

(a) Generally

(b) Partnerships

(c) Trusts

(3) Foreign Earned Income Exclusion

(4) Withholding on Payments to the Possessions

(5) Charitable Contributions

(6) Expiring Provisions

(7) Tax Credits

(8) Transfers by U.S. Persons to Territorial Corporations

(9) Information Reporting

(10) U.S. Owners of Territorial S Corporations and Partnerships

(11) Exclusion of Certain Possession Source Income Under Code § 931

(12) Bonds Issued by Territorial Governments

(13) Moving Expenses

(14) Expenses for Attendance at Conventions

(15) Source of Income Rules and Effectively Connected Income

(16) Reciprocal Exemption of Income from International Transportation

(17) Income Tax Treaties

(18) Mutual Agreement Procedure for Double Taxation by IRS and Possession

(19) Excise Taxes on Private Foundations

(20) Banks Organized in the Possessions

b. Excise Taxes on Exports to and Imports from the Territories

(1) General Exemption for Articles for Export to the Territories

(2) Excise Taxes Which Apply to the Territories and Possessions

(3) Excise Taxes Applying by General Application

(4) Excise Taxes Which Do Not Apply in the Territories and Possessions

c. Alcohol, Tobacco, and Firearms Excise Taxes

d. Estate, Gift, and Generation Skipping Taxes

(1) Application of Estate, Gift, and Generation- Skipping Taxes to Residents in the Territories and Possessions

(2) Application of U.S. Estate and Gift Tax Treaties to Residents of the Possessions and Territories

3. U.S. Customs and Excise Taxes on Imports to the United States from the Possessions

a. Generally

b. Duty-Free Treatment of Goods Imported into the United States from the Possessions

c. Rules of Origin Apply in the Possessions

d. Watches

e. Jewelry

f. Textiles

g. Caribbean Basin Initiative

h. Shipping Laws

i. Import into the United States for Re-export to the Possessions

4. Fishing and Maritime Laws

5. Application of Federal Laws to the Uninhabited Territories

C. Foreign Relations and Defense

D. Applicability of Bilateral and Multilateral Treaties of the United States to the Territories

III. Virgin Islands of the United States - The Territory, Its People and Economy

A. General

B. Territorial Status

C. Government

1. Generally

2. The Executive Branch

3. The Territorial Legislature

4. The Court System and Source of Law

5. Revenue

D. Civil Rights

IV. Operating a Business in the Virgin Islands

A. Foreign Investment Regulation

1. Opportunities

2. Incentives

a. General

b. Economic Development Incentives

(1) Background

(2) Administration of the EDC Program

(3) Benefits

(4) Eligibility

(5) Small Business Program

c. Enterprise Zone Program

d. Tax Exemptions for Specific Activities

e. Incentives in the Mirror Code

f. Preferential Treatment for Exports to the United States

g. Other Programs

3. Restrictions

B. Currency and Exchange Controls

C. Trade and Commerce Regulation

1. Imports and Exports

a. Generally

b. Imports into the Virgin Islands

c. Exports from the Virgin Islands

d. Documentation

2. General Regulation of Business

a. Business License

b. Monopolies and Restrictive Trade Practices

c. Consumer Protection

d. Franchises

e. Price Controls

f. Securities Regulation

3. Protection of Intellectual Property

D. Immigration Regulations

E. Labor Relations

1. Generally

2. Wrongful Discharge

3. Anti-discrimination Laws

4. Workers Compensation

5. Virgin Islands Plant Closing Act

F. Financing the Business

V. Forms of Doing Business in the U.S. Virgin Islands

A. Principal Business Entities

1. Sole Proprietorship

2. Joint Stock Corporation

3. Partnership

4. Branch of a Foreign Corporation

5. Other Entities

B. Joint Stock Corporation

1. Formation

a. Purpose Clause

b. Corporate Name

c. Incorporators

d. Articles of Incorporation

e. Capital Stock

f. Incorporation Procedure

g. Costs of Incorporation

2. Operation

a. License and Reports

b. Amendment of Articles

c. Increases and Reductions of Capital Stock

d. Acquisition of Own Stock

e. Corporate Officers

f. Shareholders’ Meetings

g. Directors’ Meetings

h. Books and Records

i. Financial Statements

j. Dividends and Other Distributions of Profits

k. Reserves

3. Statutory Merger

4. Dissolution and Liquidation

5. Reorganization

C. Other Corporate Entities

1. Exempt Companies

a. Generally

b. Formation

c. Administrative Requirements

2. Banks

a. Generally

b. Exempt International Banking Facilities

3. Insurance Companies

a. Generally

b. Captive Insurance Companies

4. Foreign Sales Corporations

5. Section 936 Possessions Corporations

D. Partnerships

1. Domestic Partnerships

a. General Partnerships

(1) Formation

(2) Regulation

(3) Dissolution

b. Limited Partnerships

c. Limited Liability Partnerships

d. Limited Liability Limited Partnerships

2. Foreign Partnerships

E. Branch of a Foreign Corporation

1. Registration

2. Liability

3. Books and Records

F. Other Business Entities

1. Limited Liability Companies

a. Domestic Limited Liability Companies

b. Foreign LLCs

2. Professional Corporations

3. Cooperatives

VI. Principal Taxes (Virgin Islands)

A. Income Tax

1. Introduction - The Mirror System

2. The Residual Liability Theory

3. Administration and Enforcement

4. Statute of Limitations

B. Estate and Gift Tax

C. Sales Tax or VAT

D. Capital Investment Tax

E. Payroll Tax

F. Trade Tax

G. Net Worth Tax

H. Local Taxes

I. Other Taxes

1. Gross Receipts Tax

2. Excise Tax

3. Fuel Tax

4. Stamp Tax

5. Hotel Occupancy Tax

6. Highway Users Tax and Vehicle Tire Tax

7. Tax on Performances

8. Telephonic Long Distance Surtax

9. Insurance Premium Tax

10. Property Tax

11. Personal Use Tax

12. Container Tax

VII. Taxation of Domestic Corporations (Virgin Islands)

A. What Is a Domestic Corporation?

B. Corporate Income Tax

1. Taxation of Worldwide Income

a. Generally

b. Virgin Islands Corporations with U.S. Source Income

2. Accounting

3. Calculation of Gross Income

4. Business Expenses

a. General

b. Travel and Entertainment Expenses

c. Taxes

d. Depreciation and Amortization

e. Charitable Contributions

5. Capital Expenditures

6. Loss Carryovers and Carrybacks

7. Tax Credits

a. Foreign Tax Credit

b. Other Credits

8. Tax Rates and Calculation of Taxable Income

9. Assessment and Filing

a. Corporations with U.S. and Virgin Islands Source Income

b. Corporations with Only Non-U.S. Source Income

10. Consolidated Returns

11. Reorganizations

a. Generally

b. Cross-border Transactions

12. Advance Rulings

C. Other Taxes

1. Dividend Tax

2. Capital Investment Tax

3. VAT

4. Trade Tax

5. Real Estate Tax - Foreign Investment in Real Property Tax Act

6. Local Taxes

7. Other Taxes

VIII. Taxation of Foreign Corporations (Virgin Islands)

A. What Is a Foreign Corporation?

1. Generally

2. Danbury: The “Ultimate Tax Shelter”

B. Determination of Taxable Income and Method of Taxation

IX. Taxation of a Branch (Virgin Islands)

X. Taxation of Partnerships (Virgin Islands)

XI. Taxation of Other Business Entities (Virgin Islands)

A. Foreign Sales Corporation

B. Exempt Company

C. Trusts

D. S Corporations

XII. Taxation of Individuals - Residents (Virgin Islands)

A. Scope of Taxation

B. Residence

1. Generally

2. Post-2003 Standard for Determining Residency

3. Period for Determining Status in Virgin Islands

4. Pre-2004 Standard for Determining Residency

C. Determination of Gross Income

D. Allowable Allowances, Deductions, and Credits

E. Rates and Calculation of Taxable Income

F. Assessment and Filing

XIII. Taxation of Nonresidents (Virgin Islands)

A. Nonresident Aliens

B. U.S. Citizens Not Resident in the Virgin Islands with Virgin Islands-Source Income

C. Business Income

D. Investment Income

XIV. Estate, Inheritance, Transfer and Gift Tax (Virgin Islands)

A. Federal Estate, Gift, and Generation-Skipping Taxes

B. Virgin Islands Inheritance and Gift Taxes

1. Generally

2. Inheritance Tax

a. Taxable Transfers

b. Exempt Transfers

c. Deductible Liabilities

d. Tax Rates

e. Procedure

3. Gift Tax

a. Taxable Property

b. Tax Rates

c. Procedure

XV. Intercompany Pricing (Virgin Islands)

XVI. Special Provisions Relating to Multinational Corporations (Virgin Islands)

A. Foreign Family Foundations

B. Tax Haven Operations

C. Subpart F-type Provisions

XVII. Avoidance of Double Taxation (Virgin Islands)

A. Foreign Tax Credits

B. Tax Treaties

XVIII. Guam - The Territory, Its People and Economy

A. General

B. Territorial Status

C. Government

1. General

2. The Executive Branch

3. The Legislature

4. The Judiciary and Source of Law

5. Revenue

D. Civil Rights

XIX. Operating a Business in Guam

A. Foreign Investment Regulation

1. Opportunities

2. Incentives

a. Qualifying Certificate Program

(1) Generally

(2) Special Businesses

b. Preferential Treatment for Exports to the United States

c. Tax Rebate Program for Individuals

d. American Investors Act

e. Miscellaneous

f. Expiring Provisions

3. Restrictions

B. Currency and Exchange Controls

C. Trade and Commerce Regulation

1. Imports and Exports

a. Generally

b. Imports into Guam

c. Exports from Guam

2. General Regulation of Business

a. Business License

b. Monopolies and Restrictive Trade Practices

c. Consumer Protection

d. Securities Regulation

e. Professional Licenses

3. Protection of Intellectual Property

a. Generally

b. Industrial Know-How

c. Franchises

D. Immigration Regulations

E. Labor Relations

F. Financing the Business

XX. Forms of Doing Business in Guam

A. Principal Business Entities

1. Sole Proprietorship

2. Joint Stock Corporation

3. Partnership

4. Branch of a Foreign Corporation

5. Other Entities

B. Joint Stock Corporation

1. Formation

a. Purpose Clause

b. Corporate Name

c. Incorporators

d. Articles of Incorporation

e. Capital Stock

f. Incorporation Procedure

g. Costs of Incorporation

2. Operation

a. Amendment of Articles

b. Increases and Reductions of Capital Stock

c. Acquisition of Own Stock

d. Corporate Officers

e. Shareholders’ Meetings

f. Directors’ Meetings

g. Books and Records

h. Dividends and Other Distributions of Profits

3. Statutory Merger

4. Dissolution and Liquidation

5. Reorganization

C. Other Corporate Entities

1. Insurance Companies

a. Regular Insurance Companies

b. Captive Insurance Companies

2. Banks

a. Generally

b. Off-shore Lending Facility

c. Off-shore Financing Corporation

3. Trust Companies

D. Partnerships

1. General Partnerships

2. Limited Partnerships

3. Limited Liability Partnerships

4. Foreign Partnerships

E. Branch of a Foreign Corporation

1. Registration

2. Liability

3. Books and Records

F. Other Business Entities

1. Limited Liability Companies

a. Formation

b. Operation

2. Professional Corporations

3. Industrial Development Corporation

XXI. Principal Taxes (Guam)

A. Income Tax

1. The Guam Territorial Income Tax

2. Administration and Enforcement

B. Estate and Gift Tax

C. Sales and Use Tax

D. Capital Investment Tax

E. Payroll Tax

F. Trade Tax - Business Privilege Tax (Gross Receipts Tax)

1. Generally

2. Returns and Payment of Tax

3. Exemptions

4. Enforcement and Collection

G. Net Worth Tax

H. Local Taxes

I. Other Taxes

1. Documents Tax

2. Tax on Amusement Devices and Recreation Facilities

3. Real Property Tax

4. Alcohol and Tobacco Taxes

5. Fuel Taxes

6. Hotel Tax

XXII. Taxation of Domestic Corporations (Guam)

A. What Is a Domestic Corporation?

B. Corporate Income Tax

1. Taxation of Worldwide Income

2. Accounting

a. General

b. Accounting Periods

3. Calculation of Gross Income

4. Business Expenses

a. General

b. Travel and Entertainment Expenses

c. Taxes

d. Depreciation and Amortization

5. Capital Expenditures

6. Loss Carryovers and Carrybacks

7. Tax Credits

a. Foreign Tax Credit

b. Other Credits

8. Tax Rates and Calculation of Taxable Income

9. Assessment and Filing

10. Consolidated Returns

11. Reorganizations

C. Other Taxes

1. Dividend Tax

2. Business Privilege Tax

3. Real Estate Tax

XXIII. Taxation of Foreign Corporations and Branches (Guam)

XXIV. Taxation of Partnerships (Guam)

XXV. Taxation of Other Business Entities (Guam)

A. Banks

B. Trusts

1. Generally

2. Guam Resident Trust

C. S Corporations

XXVI. Taxation of Individuals - Residents (Guam)

A. Scope of Taxation

1. Generally

2. New Guam Residents from the United States

B. Residence

C. Determination of Gross Income

D. Calculation of Taxable Income

E. Rates and Credits

F. Assessment, Filing and Rebates

XXVII. Taxation of Nonresident Aliens (Guam)

XXVIII. Estate, Inheritance, Transfer and Gift Tax (Guam)

XXIX. Intercompany Pricing (Guam)

XXX. Special Provisions Relating to Multinational Corporations (Guam)

A. Foreign Family Foundations

B. Tax Haven Operations

C. Subpart F-type Provisions

XXXI. Avoidance of Double Taxation (Guam)

A. Foreign Tax Credits

B. Tax Treaties

XXXII. Commonwealth of the Northern Mariana Islands - The Territory, Its People and Economy

A. General

B. Territorial Status

C. Government

1. Generally

2. Legislature

3. Executive Branch

4. Judicial System and Source of Law

5. Revenue

D. Civil Rights

XXXIII. Operating a Business in the Commonwealth of the Northern Mariana Islands

A. Foreign Investment Regulation

1. Opportunities and Incentives

a. Generally

b. Income Tax Rebate

c. Qualifying Certificate Program

d. Free Trade Zone

e. Duty-free Import into United States of CNMI-made Goods

f. Loan Programs of the Commonwealth Development Authority

g. Expiring Programs

2. Restrictions

a. Generally

b. Non-U.S. Investors

(1) Generally

(2) Short-Term Business Entry Permit

(3) Regular-Term Business Certificate

(4) Long-Term Business Certificate

(5) Foreign Investor Certificate

(6) Foreign Retiree Investment Certificate

(7) Fees

c. Land

d. Local Preference

B. Currency and Exchange Controls

C. Trade and Commerce Regulation

1. Imports and Exports

a. Generally

b. Exports to the United States

c. Items Restricted from Import; Contraband

d. Custom Duties and Other Taxes

e. Documentation

2. General Regulation of Business

a. Business License

b. Monopolies and Restraints on Trade

c. Price Controls and Consumer Protection

d. Securities Regulation

e. Weights and Measures

f. Protection of Intellectual Property Rights

D. Immigration Regulations

E. Labor Relations

1. Federal Laws

a. Generally

b. Garment Factory Litigation

2. CNMI Laws

a. Generally

b. Minimum Wages and Hours

c. Nonresident Workers

(1) Generally

(2) Application to CNMI Department of Labor and Immigration

(3) Nonresident Worker's Affidavit and Contract

(4) Conditions on Use of Nonresident Workers

(5) Requirements and Rights of Nonresident Workers

F. Financing the Business

XXXIV. Forms of Doing Business in Commonwealth of the Northern Mariana Islands

A. Principal Business Entities

1. Sole Proprietorship

2. Joint Stock Corporation

3. Partnership

4. Branch of a Foreign Corporation

5. Other Entities

B. Joint Stock Corporation

1. Formation

a. Purpose Clause, Powers and Duration

b. Corporate Name

c. Incorporators

d. Articles of Incorporation

e. Capital Stock

f. Incorporation Procedure

g. Costs of Incorporation

2. Operation

a. Amendment of Articles

b. Increases and Reductions of Capital Stock

c. Acquisition of Own Stock

d. Corporate Officers

e. Shareholders' Meetings

f. Directors' Meetings

g. Books and Records

h. Financial Statements

i. Dividends and Other Distributions of Profits

j. Government Oversight

3. Mergers and Reorganizations

4. Dissolution

C. Partnership

D. Branch of a Foreign Corporation

1. Registration

2. Liability

3. Books and Records

E. Other Business Entities

1. Banks

a. Generally

b. Offshore Banks

2. Insurance Companies

XXXV. Principal Taxes (Northern Mariana Islands)

A. Introduction

B. Income Tax

1. Generally

a. Introduction

b. Interpretation Principles

c. Tax Reform Act of 1986

d. Income Accruing Before January 1, 1985

2. Rebate of Income Tax

3. Administration and Procedure

C. Estate and Gift Taxes

D. Sales Tax

E. Capital Investment Tax or Net Worth Tax

F. Payroll Taxes

G. Trade Tax - Business Gross Receipts Tax

1. Generally

2. Rates

3. Exemptions

4. Administration and Procedure

H. Ad Valorem Property Taxes

I. Other

1. Wage and Salary Tax

a. Generally

b. Source Rules

c. Rates

2. Earnings Tax

3. Excise Taxes

a. General Excise Tax

b. Fuel Taxes

c. Beverage Container Tax

d. Returns and Payments

4. Gaming Machine Jackpot Tax

5. Bar Tax

6. Hotel Occupancy Tax

7. Developer Infrastructure Tax

8. Procedure and Administration for Taxes Other Than Income Taxes

XXXVI. Taxation of Domestic Corporations (Northern Mariana Islands)

A. What Is a Domestic Corporation?

B. Corporate Income Tax

1. Taxation of Worldwide Income

2. Accounting

a. General

b. Qualified Fresh-Start Assets

3. Calculation of Gross Income

4. Business Expenses

a. General

b. Travel and Entertainment Expenses

c. Depreciation and Amortization

5. Capital Expenditures

6. Loss Carryovers and Carrybacks

7. Tax Credits

a. Foreign Tax Credit

b. Other Credits

8. Tax Rates and Rebates

9. Assessment and Filing

10. Consolidated Returns

11. Reorganizations

XXXVII. Taxation of Foreign Corporations and Branches (Northern Mariana Islands)

XXXVIII. Taxation of Partnerships (Northern Mariana Islands)

XXXIX. Tax-Exempt Organizations (Northern Mariana Islands)

XL. Taxation of Individuals - Residents (Northern Mariana Islands)

A. Scope of Taxation

1. Generally

2. New CNMI Residents from the United States

B. Residence

C. Determination of Gross Income

D. Allowances, Deductions and Credits

E. Tax Rates and Rebates

F. Assessment and Filing

XLI. Taxation of Nonresident Aliens (Northern Mariana Islands)

XLII. Estate, Inheritance, Transfer and Gift Tax (Northern Mariana Islands)

A. Estate, Inheritance or Transfers at Death Tax

B. Gift Tax

C. Treaties

XLIII. Intercompany Pricing (Northern Mariana Islands)

XLIV. Special Provisions Relating to Multinational Corporations (Northern Mariana Islands)

A. Foreign Family Foundations

B. Tax Haven Operations

C. Subpart F-type Provisions

XLV. Avoidance of Double Taxation (Northern Mariana Islands)

A. Foreign Tax Credits

B. Tax Treaties

XLVI. American Samoa - The Territory, Its People and Economy

A. General

B. Territorial Status

C. Government

1. General

2. Executive Branch

3. Legislature

4. Source of Law and the Judiciary

5. Revenue

D. Civil Rights

XLVII. Operating a Business in American Samoa

A. Foreign Investment Regulation

1. Opportunities

2. Incentives

a. Tax Incentives for Businesses

b. Economic Development Financing

3. Restrictions

a. Restrictions on Ownership and Transfer of Land

b. Foreign Investors Program and Foreign Investors Permit

B. Currency and Exchange Controls

C. Trade and Commerce Regulation

1. Imports and Exports

a. Custom Duties and Other Taxes

b. Documentation

c. Trade with the United States

2. General Regulation of Business

a. Business License

b. Monopolies and Unfair Trade Practices

c. Price Controls

d. Securities Regulation

3. Protection of Intellectual Property

D. Immigration Regulations

E. Labor Relations

F. Financing the Business

XLVIII. Forms of Doing Business in American Samoa

A. Principal Business Entities

1. Sole Proprietorship

2. Joint Stock Corporation

3. Partnership

4. Branch of a Foreign Corporation

5. Other Entities

B. Joint Stock Corporation

1. Formation

a. Purpose Clause

b. Corporate Name

c. Incorporators

d. Articles of Incorporation

e. Capital Stock

f. Incorporation Procedure

g. Powers

h. Costs of Incorporation

2. Operation

a. General

b. Amendment of Articles

c. Increases and Reductions of Capital Stock

d. Acquisition of Own Stock

e. Corporate Officers

f. Shareholders' Meetings

g. Directors' Meetings

h. Books and Records

i. Financial Statements

j. Dividends and Other Distributions of Profits

k. Reserves

3. Statutory Merger and Reorganizations

4. Dissolution and Liquidation

C. Other Corporate Entities

D. Partnerships

E. Branch of a Foreign Corporation

1. Registration

2. Liability

3. Books and Records

F. Other Business Entities

XLIX. Principal Taxes (American Samoa)

A. Income Tax

1. Generally

2. Administration and Enforcement

3. U.S. Authority and the Residual Liability Theory

B. Estate and Gift Tax

C. Sales Tax

D. Capital Investment, Asset or Net Worth Tax

E. Payroll Tax

F. Trade Tax

G. Local Taxes

H. Withholding Taxes

L. Taxation of Domestic Corporations (American Samoa)

A. What Is a Domestic Corporation?

B. Corporate Income Tax

1. Income

2. Business Expenses and Deductions

3. Capital Expenditures

4. Loss Carryovers and Carrybacks

5. Tax Credits

a. Foreign Tax Credit Against American Samoa Income Tax

b. Other Credits

c. Businesses Operating Under a Tax Exemption

6. Tax Rates, Assessment, and Filing

7. Dividend Tax

LI. Taxation of Foreign Corporations (American Samoa)

A. What Is a Foreign Corporation?

B. Determination of Taxable Income

C. Corporations Also Filing in the United States

LII. Taxation of a Branch (American Samoa)

LIII. Taxation of Partnerships (American Samoa)

LIV. Taxation of Other Business Entities - Foreign Sales Corporations (American Samoa)

LV. Taxation of Individuals – Residents (American Samoa)

A. Scope of Taxation

1. Generally

2. Special Rule for U.S. Individuals Moving to American Samoa

B. Residence

C. Determination of Gross Income

1. Taxation by American Samoa

2. Taxation by the United States

a. The § 931 Exclusion from Gross Income

b. Section 957(c) Exception from "U.S. Shareholder" Status for Subpart F

D. Allowances, Deductions and Credits

1. American Samoa Return

2. U.S. Return

E. Rates and Calculation of Taxable Income

F. Assessment and Filing

LVI. Taxation of Nonresidents (American Samoa)

A. American Samoa Return

B. U.S. Return

LVII. Estate, Inheritance, Transfer and Gift Tax (American Samoa)

LVIII. Intercompany Pricing (American Samoa)

LIX. Special Provisions Relating to Multinational Corporations (American Samoa)

A. Foreign Family Foundations

B. Tax Haven Operations

C. Subpart F-type Provisions

LX. Avoidance of Double Taxation (American Samoa)

A. Foreign Tax Credits

B. Tax Treaties


WORKING PAPERS

Working Papers

Table of Worksheets

Worksheet 1 Selected Government Offices

Worksheet 2 Holidays and Time

Worksheet 3 Simplified Example 1 Individual Residing in U.S. with U.S. Virgin Islands-Source Income

Worksheet 4 IRS Form 1040, U.S. Individual Income Tax Return [Showing Indication of Credit for Virgin Islands Income Tax]

Worksheet 5 IRS Form 8689, Allocation of Individual Income Tax to the Virgin Islands

Worksheet 6 Simplified Example 2 Individual Residing in U.S. Virgin Islands; IRS Form 1040, U.S. Individual Income Tax Return

Worksheet 7 IRS Form 1040-SS, U.S. Self-Employment Tax Return (2006) and Instructions

Worksheet 8 VIBIR Form 1040INFO, Non-Virgin Islands Source Income of Virgin Islands Residents

Worksheet 9 IRS Form W-8ECI [Claiming § 881(b) Status for No Withholding]

Worksheet 10 Application for United States Virgins Islands Business License (U.S. Virgin Islands Dept. of Licensing and Consumer Affairs)

Worksheet 11 VIBIR Form LIC 1, Application for Tax Filing and Payment Status Report-Licensing (U.S. Virgin Islands Bureau of Internal Revenue)

Worksheet 12 VIBIR Form LIC 1A, Affidavit [to accompany Application for Tax Filing and Payment Status Report-Licensing] (U.S. Virgin Islands Bureau of Internal Revenue)

Worksheet 13 Application for Industrial Development Benefits (U.S. Virgin Islands Industrial Development Commission)

Worksheet 14 Selected Government Offices

Worksheet 15 Holidays and Time

Worksheet 16 IRS Form 5074, Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands

Worksheet 17 Selected Government Offices

Worksheet 18 Holidays and Time

Worksheet 19 IRS Form 5074, Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands

Worksheet 20 Schedule of Preferred Activities - Qualifying Certificate Program

Worksheet 20A Corporate Income Tax Return (Form 1120CM)

Worksheet 20B Application for Rebate on CNMI Source Income Tax (Form OS-3405A, for Use with Form 1120CM)

Worksheet 20C Allocation on Income for Partnership Return (Schedule 1065-CM)

Worksheet 20D Employee's Annual Wage and Salary, and Earnings Tax Return (Form 1040NMI)

Worksheet 20E Business Gross Revenue Tax Quarterly Return (Form OS-3105)

Worksheet 20F Territorial Individual Income Tax Return (Form 1040CM)

Worksheet 21 Selected Government Offices

Worksheet 22 Holidays and Time

Worksheet 23 U.S. Individual Income Tax Example

Worksheet 24 IRS Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa

Worksheet 25 Form 390, A.S. Individual Income Tax Return

Worksheet 26 IRS Form 8898, Statement for Individuals Who Begin or End Bona Fide Residence in a U.S. Possession

Bibliography

OFFICIAL

Legislative History

Other Agency Decisions

Attorney General Opinions

Internal Revenue Service Rulings

Treasury Regulations

Labor Rulings

Customs Rulings

Treaties and International Agreements

Other

Cases

Virgin Islands of the United States

Virgin Islands Statutes

Virgin Islands Rulings and Regulations

Cases

Guam

Statutes

Guam Rulings and Administrative Materials

Cases

Commonwealth of the Northern Mariana Islands

Covenant

Constitution

Statutes

Rulings and Regulations

Cases

American Samoa

Constitution

Statutes

Regulations

Cases

UNOFFICIAL

Books and Treatises

Periodicals

1975

1976

1977

1979

1981

1988

1990

1993

1994

1995

1996

1997

1998

1999

2000

2001

2004