LIS

Virginia Law

Administrative Code

Creating a Report: Check the sections you'd like to appear in the report, then use the "Create Report" button at the bottom of the page to generate your report. Once the report is generated you'll then have the option to download it as a pdf, print or email the report.

Virginia Administrative Code
Title 23. Taxation
Agency 10. Department of Taxation
Chapter 120. Corporation Income Tax
11/5/2024

23VAC10-120-330. Prohibition of worldwide consolidation or combination.

A consolidated or combined return may not include a controlled foreign corporation the income of which is derived from sources without the United States.

1. A controlled foreign corporation is a corporation which:

a. is organized under the laws of a foreign country, and

b. has its commercial domicile in a foreign country, and

c. is an affiliate of one or more corporations having income from Virginia sources.

2. The income of a controlled foreign corporation is derived from sources without the United States if:

a. such controlled foreign corporation is not subject to income tax under the laws of the United States, and

b. dividends paid by such controlled foreign corporation would qualify as "income from foreign sources" under § 58.1-302 of the Code of Virginia.

Statutory Authority

§§ 58.1-203 and 58.1-443 of the Code of Virginia.

Historical Notes

Derived from VR630-3-443, eff. January 1, 1985.

Website addresses provided in the Virginia Administrative Code to documents incorporated by reference are for the reader's convenience only, may not necessarily be active or current, and should not be relied upon. To ensure the information incorporated by reference is accurate, the reader is encouraged to use the source document described in the regulation.

As a service to the public, the Virginia Administrative Code is provided online by the Virginia General Assembly. We are unable to answer legal questions or respond to requests for legal advice, including application of law to specific fact. To understand and protect your legal rights, you should consult an attorney.