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Possessions Corporation
(redirected from Possessions Corporations)

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Possessions corporation
A type of corporation permitted under the US tax code whose branch operation in a US possession can obtain tax benefits as though it were operating as a foreign subsidiary.

Possessions Corporation
A U.S. corporation that does a significant amount of business in an American overseas possession, usually in Puerto Rico. The IRS allows these corporations to take a tax credit for the business they conduct in the possessions. See also: Form 5735.


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936 Possessions Corporation Issues Consistent with the fact they are excluded from a federal consolidated return, section 936 possessions corporations are generally excluded from the water's-edge group.
These corporations include FSCs, IC-DISCs, S corporations, electing S corporations, personal service corporations, controlled foreign corporations (CFCs), personal CFCs, certain tax-exempt organizations, possessions corporations, certain cooperative associations and certain corporations with required tax years.
possessions corporations is prepared every two years on the activities of domestic corporations that qualify for a possession's tax credit by deriving at least 80 percent of gross income from sources within a qualifying U.
 
 
 
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