{"id":14642,"date":"2011-10-07T07:14:49","date_gmt":"2011-10-07T07:14:49","guid":{"rendered":"http:\/\/newspaper.ctsi-logistics.com\/?p=14642"},"modified":"2011-10-07T07:14:49","modified_gmt":"2011-10-07T07:14:49","slug":"senate-oks-bill-on-tax-rate-for-foreign-corporations","status":"publish","type":"post","link":"https:\/\/www.saipantribune.com\/index.php\/senate-oks-bill-on-tax-rate-for-foreign-corporations\/","title":{"rendered":"Senate OKs bill on tax rate for foreign corporations"},"content":{"rendered":"
By Haidee V. Eugenio
\nReporter<\/div>\n

The Senate adopted Wednesday a conference committee report recommending passage of a bill providing for a tax rate for foreign corporations earning income from outside of the CNMI.<\/p>\n

House Bill 17-162, authored by Rep. Ray Basa (Cov-Saipan) and four other lawmakers, also needs House approval before heading to the governor’s desk.<\/p>\n

Among other things, a foreign operations corporation has 100 percent rebate offset of Northern Marianas territorial income tax, and is exempt from business gross revenue tax, income tax and license fee except the annual $1,500 FOC license fee.<\/p>\n

The bill went back and forth the two houses until a conference committee was formed to break the deadlock on the revenue-generating bill.<\/p>\n

HB 17-162 seeks to encourage foreign persons to establish a company in the CNMI and by shifting their income to the islands, pay a low tax on their income from foreign operations.<\/p>\n

Such businesses currently do not engage in business or investment activity in the CNMI.<\/p>\n

The tax on company income from foreign corporations would be a new source of income to the Commonwealth.<\/p>\n

\u201cIf the company does engage in business activity in the Commonwealth, the income from the local business activity would be subject to regular Commonwealth taxes,\u201d the bill says.<\/p>\n

A \u201cforeign operations corporation\u201d derives at least 90 percent of its income from outside the CNMI, among other things.<\/p>\n

The Senate also approved during its Wednesday session a bill expanding the tourism incentive program and charges passengers from non-U.S. destinations a new $15 \u201ctravel promotion fee\u201d to help the Marianas Visitors Authority’s tourism promotion.<\/p>\n

House Bill 17-179, House Substitute 1, Senate Substitute 2 goes back to the House for action. The bill was introduced by House floor leader George Camacho (Ind-Saipan).<\/p>\n","protected":false},"excerpt":{"rendered":"

By Haidee V. Eugenio Reporter The Senate adopted Wednesday a conference committee report recommending passage…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-14642","post","type-post","status-publish","format-standard","hentry","category-local-news"],"_links":{"self":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts\/14642","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/comments?post=14642"}],"version-history":[{"count":0,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts\/14642\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/media?parent=14642"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/categories?post=14642"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/tags?post=14642"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}