To amend the Internal Revenue Code of 1986 to determine global intangible low-taxed income without regard to certain income derived from services performed in the Virgin Islands.

Bill 118 hr 10503 aims to make changes to the Internal Revenue Code of 1986 in order to determine global intangible low-taxed income (GILTI) without taking into account certain income that is earned from services performed in the Virgin Islands. GILTI is a provision in the tax code that was introduced as part of the Tax Cuts and Jobs Act of 2017, and it is designed to prevent multinational corporations from shifting profits to low-tax jurisdictions.

The bill specifically targets income derived from services performed in the Virgin Islands, which is currently included in the calculation of GILTI. By excluding this income, the bill seeks to ensure that the GILTI calculation accurately reflects the income earned by multinational corporations in higher-tax jurisdictions.

The purpose of this amendment is to provide clarity and consistency in the calculation of GILTI, and to prevent any unintended consequences that may arise from including income from services performed in the Virgin Islands. The bill does not seek to change the overall structure of GILTI, but rather to make a targeted adjustment to ensure that the calculation is fair and accurate. Overall, Bill 118 hr 10503 is a technical amendment to the tax code that aims to improve the accuracy of the GILTI calculation by excluding certain income derived from services performed in the Virgin Islands. It is a non-partisan effort to ensure that multinational corporations are paying their fair share of taxes in the United States.