Introduced by Rep. Ramon S. Basa, House Bill 17-163 aims to bring in more foreign investments to the CNMI.
The bill will offer a lower tax rate to foreign corporations that will establish offices on island.
The target companies are those that earn their income from foreign or any off-island operations.
Basa, Covenant-Saipan, said his bill will impose a 10 percent tax per annum on “net foreign income.”
The income from other operations such as capital gains, dividends, interest, royalties, copyrights, patents and other intangibles “shall not be subject to the tax imposed by the bill or the business gross revenue tax” under CNMI law.
Under the bill, the foreign corporation “shall be exempt from license fee except the [foreign operation corporation] fee and tax on any income under the Northern Marianas Territorial Income Tax.”
Asked for a comment, Rep. Raymond D. Palacios said he supports Basa’s bill because he believes it will help the CNMI generate fresh revenues.
Rep. Fredrick P. Deleon Guerrero, Ind.-Saipan, said the bill is not a bad idea but he will have to look at it closely first.
