11.1801 Legislative findings and purposes.

Cite as [A.S.C.A. 11.1801]

The Legislature Finds and declares that:

(1) The United States Congress has established, in Title VIII of the Tax Reform Act of 1984, various tax incentives to encourage foreign export trade by United States companies and has provided that tax-favored Foreign Sales Corporations may be established in possessions of the United States, including American Samoa, and that no tax shall be imposed by these possessions on foreign trade income derived before 1 January 1987;

(2) It is in the best interests of American Samoa to support export activity by United States companies and to attract United States companies which are engaged in export trade to establish Foreign Sales Corporations in American Samoa, and that special tax incentives are necessary for this purpose;

(3) There is a need to attract to American Samoa economic activity of the type which is incident to the establishment of Foreign Sales Corporations, including banking, legal, financial, and real estate services; and

(4) In order to improve the prosperity and welfare of the Territory and its inhabitants, it is desirable to broaden the tax base of the Territory by providing for a corporation fran-chise tax and encouraging the organization of new corporations within the Territory which are subject to such corporation franchise tax.

History: 1984, PL 18-54