Territorial Tax Parity Act of 2025

This bill changes the rules for how income earned in U.S. territories like Puerto Rico, Guam, and the Virgin Islands is taxed. Under the new rules, income would only count as U.S.-sourced income if it comes from an office or fixed place of business located in the United States itself. The bill also gives the IRS the power to adjust the tax payment requirement for the U.S. Virgin Islands that applies when someone sells certain personal property, bringing the Virgin Islands in line with rules that already exist for other U.S. territories.

Your Vote