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\u2019s 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\u2019s 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":"
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