{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-302.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-302.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-302.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-302.html"}],"law_id":82538,"edition_id":1,"section_id":82538,"structure_id":13970,"section_number":"58.1-302","catch_line":"Definitions","history":"Code 1950, \u00a7\u00a7 58-151.02, 58-151.013, 58-151.023, 58-151.034, 58-151.081; 1971, Ex. Sess., c. 171; 1972, cc. 310, 827; 1973, cc. 198, 345, 458; 1974, c. 682; 1975, c. 46; 1976, cc. 528, 694, 781; 1977, cc. 297, 612; 1978, cc. 67, 158; 1979, cc. 226, 404, 596; 1981, cc. 402, 414; 1982, c. 633; 1983, cc. 452, 472; 1984, cc. 153, 162, 636, 674, 675, 729; 1990, c. 294; 1992, c. 678; 1995, c. 602; 2000, cc. 382, 400; 2004, Sp. Sess. I, c. 3; 2005, c. 48; 2017, c. 444; 2019, cc. 23, 192.","full_text":"For the purpose of this chapter and unless otherwise required by the context:\n\t\t“Affiliated” means two or more corporations subject to Virginia income taxes whose relationship to each other is such that (i) one corporation owns at least 80 percent of the voting stock of the other or others or (ii) at least 80 percent of the voting stock of two or more corporations is owned by the same interests.\n\t\t“Compensation” means wages, salaries, commissions and any other form of remuneration paid or accrued to employees for personal services.\n\t\t“Corporation” includes associations, joint stock companies and insurance companies.\n\t\t“Domicile” means the permanent place of residence of a taxpayer and the place to which he intends to return even though he may actually reside elsewhere. In determining domicile, consideration may be given to the applicant’s expressed intent, conduct, and all attendant circumstances including, but not limited to, financial independence, business pursuits, employment, income sources, residence for federal income tax purposes, marital status, residence of parents, spouse and children, if any, leasehold, sites of personal and real property owned by the applicant, motor vehicle and other personal property registration, residence for purposes of voting as proven by registration to vote, if any, and such other factors as may reasonably be deemed necessary to determine the person’s domicile.\n\t\t“Foreign source income” means:\n\n1\n\nInterest, other than interest derived from sources within the United States;2\n\nDividends, other than dividends derived from sources within the United States;3\n\nRents, royalties, license, and technical fees from property located or services performed without the United States or from any interest in such property, including rents, royalties, or fees for the use of or the privilege of using without the United States any patents, copyrights, secret processes and formulas, good will, trademarks, trade brands, franchises, and other like properties;4\n\nGains, profits, or other income from the sale of intangible or real property located without the United States; and5\n\nThe amount of an individual’s share of net income attributable to a foreign source qualified business unit of an electing small business corporation (S corporation). For purposes of this subsection, qualified business unit shall be defined by § 989 of the Internal Revenue Code, and the source of such income shall be determined in accordance with §§ 861, 862 and 987 of the Internal Revenue Code.\n\t\t\tIn determining the source of “foreign source income,” the provisions of §§ 861, 862, and 863 of the Internal Revenue Code shall be applied except as specifically provided in subsection 5 above.\n\t\t\t“Income and deductions from Virginia sources” includes:1\n\nItems of income, gain, loss and deduction attributable to:\n\t\t\ta. The ownership of any interest in real or tangible personal property in Virginia;\n\t\t\tb. A business, trade, profession or occupation carried on in Virginia; or\n\t\t\tc. Prizes paid by the Virginia Lottery Department, and gambling winnings from wagers placed or paid at a location in Virginia.2\n\nIncome from intangible personal property, including annuities, dividends, interest, royalties and gains from the disposition of intangible personal property to the extent that such income is from property employed by the taxpayer in a business, trade, profession, or occupation carried on in Virginia.\n\t\t\t“Income tax return preparer” means any person who prepares for compensation, or who employs one or more persons to prepare for compensation, any return of tax imposed by this chapter or any claim for refund of tax. For purposes of the preceding sentence, the preparation for compensation of any portion of a return or claim for refund shall be treated as if it were the preparation of the return or claim for refund. A person shall not be an “income tax return preparer” merely because the person:1\n\nFurnishes typing, reproducing, or other mechanical assistance;2\n\nPrepares a return or claim for refund of the employer (or of an officer or employee of the employer) by whom he is regularly and continuously employed;3\n\nPrepares as a fiduciary a return or claim for refund for any person; or4\n\nPrepares an application for correction of an erroneous assessment or a protective claim for refund for a taxpayer in response to any assessment pursuant to § 58.1-1812 issued to the taxpayer or in response to any waiver pursuant to § 58.1-101 or 58.1-220 after the commencement of an audit of the taxpayer or another taxpayer if a determination in such audit of such other taxpayer directly or indirectly affects the tax liability of such taxpayer.\n\t\t\t“Individual” means all natural persons whether married or unmarried and fiduciaries acting for natural persons, but not fiduciaries acting for trusts or estates.\n\t\t\t“Intangible expenses and costs” means:1\n\nExpenses, losses and costs for, related to, or in connection directly or indirectly with the direct or indirect acquisition, use, maintenance or management, ownership, sale, exchange, lease, transfer, or any other disposition of intangible property to the extent such amounts are allowed as deductions or costs in determining taxable income;2\n\nLosses related to or incurred in connection directly or indirectly with factoring transactions or discounting transactions;3\n\nRoyalty, patent, technical and copyright fees;4\n\nLicensing fees; and5\n\nOther similar expenses and costs.\n\t\t\t“Intangible property” means patents, patent applications, trade names, trademarks, service marks, copyrights and similar types of intangible assets.\n\t\t\t“Interest expenses and costs” means amounts directly or indirectly allowed as deductions under § 163 of the Internal Revenue Code for purposes of determining taxable income under the Internal Revenue Code to the extent such expenses and costs are directly or indirectly for, related to, or in connection with the direct or indirect acquisition, use, maintenance, management, ownership, sale, exchange, lease, transfer, or disposition of intangible property.\n\t\t\t“Nonresident estate or trust” means an estate or trust which is not a resident estate or trust.\n\t\t\t“Related entity” means:1\n\nA stockholder who is an individual, or a member of the stockholder’s family enumerated in § 318 of the Internal Revenue Code, if the stockholder and the members of the stockholder’s family own, directly, indirectly, beneficially or constructively, in the aggregate, at least 50 percent of the value of the taxpayer’s outstanding stock;2\n\nA stockholder, or a stockholder’s partnership, limited liability company, estate, trust or corporation, if the stockholder and the stockholder’s partnerships, limited liability companies, estates, trusts and corporations own directly, indirectly, beneficially or constructively, in the aggregate, at least 50 percent of the value of the taxpayer’s outstanding stock; or3\n\nA corporation, or a party related to the corporation in a manner that would require an attribution of stock from the corporation to the party or from the party to the corporation under the attribution rules of § 318 of the Internal Revenue Code, if the taxpayer owns, directly, indirectly, beneficially or constructively, at least 50 percent of the value of the corporation’s outstanding stock. The attribution rules of § 318 of the Internal Revenue Code shall apply for purposes of determining whether the ownership requirements of this subdivision have been met.\n\t\t\t“Related member” means a person that, with respect to the taxpayer during all or any portion of the taxable year, is a related entity, a component member as defined in § 1563(b) of the Internal Revenue Code, or is a person to or from whom there is attribution of stock ownership in accordance with § 1563(e) of the Internal Revenue Code.\n\t\t\t“Resident” applies only to natural persons and includes, for the purpose of determining liability for the taxes imposed by this chapter upon the income of any taxable year every person domiciled in Virginia at any time during the taxable year and every other person who, for an aggregate of more than 183 days of the taxable year, maintained his place of abode within Virginia, whether domiciled in Virginia or not. The word “resident” shall not include any member of the United States Congress who is domiciled in another state.\n\t\t\t“Resident estate or trust” means:1\n\nThe estate of a decedent who at his death was domiciled in the Commonwealth;2\n\nA trust created by will of a decedent who at his death was domiciled in the Commonwealth; or3\n\nA trust created by or consisting of property of a person domiciled in the Commonwealth.\n\t\t\t“Sales” means all gross receipts of the corporation not allocated under § 58.1-407, except the sale or other disposition of intangible property shall include only the net gain realized from the transaction.\n\t\t\t“State,” for purposes of Article 10 (§ 58.1-400 et seq.), means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any foreign country.\n\t\t\t“Trust” or “estate” means a trust or estate, or a fiduciary thereof, which is required to file a fiduciary income tax return under the laws of the United States.\n\t\t\t“Virginia fiduciary adjustment” means the net amount of the applicable modifications described in §§ 58.1-322.01, 58.1-322.02, and 58.1-322.04 (including subdivision 1 of § 58.1-322.04 if the estate or trust is a beneficiary of another estate or trust) which relate to items of income, gain, loss or deduction of an estate or trust. The fiduciary adjustment shall not include the modification in § 58.1-322.03, except that the amount of state income taxes excluded from federal taxable income shall be included. The fiduciary adjustment shall also include the modification in subdivision 7 of § 58.1-322.03 regarding the deduction for the purchase of a prepaid tuition contract or contribution to a savings trust account.","order_by":null,"text":{"0":{"id":295707,"text":"For the purpose of this chapter and unless otherwise required by the context:\n\t\t“Affiliated” means two or more corporations subject to Virginia income taxes whose relationship to each other is such that (i) one corporation owns at least 80 percent of the voting stock of the other or others or (ii) at least 80 percent of the voting stock of two or more corporations is owned by the same interests.\n\t\t“Compensation” means wages, salaries, commissions and any other form of remuneration paid or accrued to employees for personal services.\n\t\t“Corporation” includes associations, joint stock companies and insurance companies.\n\t\t“Domicile” means the permanent place of residence of a taxpayer and the place to which he intends to return even though he may actually reside elsewhere. In determining domicile, consideration may be given to the applicant’s expressed intent, conduct, and all attendant circumstances including, but not limited to, financial independence, business pursuits, employment, income sources, residence for federal income tax purposes, marital status, residence of parents, spouse and children, if any, leasehold, sites of personal and real property owned by the applicant, motor vehicle and other personal property registration, residence for purposes of voting as proven by registration to vote, if any, and such other factors as may reasonably be deemed necessary to determine the person’s domicile.\n\t\t“Foreign source income” means:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":295708,"text":"Interest, other than interest derived from sources within the United States;","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":295709,"text":"Dividends, other than dividends derived from sources within the United States;","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":295710,"text":"Rents, royalties, license, and technical fees from property located or services performed without the United States or from any interest in such property, including rents, royalties, or fees for the use of or the privilege of using without the United States any patents, copyrights, secret processes and formulas, good will, trademarks, trade brands, franchises, and other like properties;","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"4":{"id":295711,"text":"Gains, profits, or other income from the sale of intangible or real property located without the United States; and","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"5":{"id":295712,"text":"The amount of an individual’s share of net income attributable to a foreign source qualified business unit of an electing small business corporation (S corporation). For purposes of this subsection, qualified business unit shall be defined by § 989 of the Internal Revenue Code, and the source of such income shall be determined in accordance with §§ 861, 862 and 987 of the Internal Revenue Code.\n\t\t\tIn determining the source of “foreign source income,” the provisions of §§ 861, 862, and 863 of the Internal Revenue Code shall be applied except as specifically provided in subsection 5 above.\n\t\t\t“Income and deductions from Virginia sources” includes:","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4","next_prefix":"1"},"6":{"id":295713,"text":"Items of income, gain, loss and deduction attributable to:\n\t\t\ta. The ownership of any interest in real or tangible personal property in Virginia;\n\t\t\tb. A business, trade, profession or occupation carried on in Virginia; or\n\t\t\tc. Prizes paid by the Virginia Lottery Department, and gambling winnings from wagers placed or paid at a location in Virginia.","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"5","next_prefix":"2"},"7":{"id":295714,"text":"Income from intangible personal property, including annuities, dividends, interest, royalties and gains from the disposition of intangible personal property to the extent that such income is from property employed by the taxpayer in a business, trade, profession, or occupation carried on in Virginia.\n\t\t\t“Income tax return preparer” means any person who prepares for compensation, or who employs one or more persons to prepare for compensation, any return of tax imposed by this chapter or any claim for refund of tax. For purposes of the preceding sentence, the preparation for compensation of any portion of a return or claim for refund shall be treated as if it were the preparation of the return or claim for refund. A person shall not be an “income tax return preparer” merely because the person:","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"1"},"8":{"id":295715,"text":"Furnishes typing, reproducing, or other mechanical assistance;","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"2","next_prefix":"2"},"9":{"id":295716,"text":"Prepares a return or claim for refund of the employer (or of an officer or employee of the employer) by whom he is regularly and continuously employed;","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"10":{"id":295717,"text":"Prepares as a fiduciary a return or claim for refund for any person; or","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"11":{"id":295718,"text":"Prepares an application for correction of an erroneous assessment or a protective claim for refund for a taxpayer in response to any assessment pursuant to § 58.1-1812 issued to the taxpayer or in response to any waiver pursuant to § 58.1-101 or 58.1-220 after the commencement of an audit of the taxpayer or another taxpayer if a determination in such audit of such other taxpayer directly or indirectly affects the tax liability of such taxpayer.\n\t\t\t“Individual” means all natural persons whether married or unmarried and fiduciaries acting for natural persons, but not fiduciaries acting for trusts or estates.\n\t\t\t“Intangible expenses and costs” means:","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"1"},"12":{"id":295719,"text":"Expenses, losses and costs for, related to, or in connection directly or indirectly with the direct or indirect acquisition, use, maintenance or management, ownership, sale, exchange, lease, transfer, or any other disposition of intangible property to the extent such amounts are allowed as deductions or costs in determining taxable income;","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"4","next_prefix":"2"},"13":{"id":295720,"text":"Losses related to or incurred in connection directly or indirectly with factoring transactions or discounting transactions;","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"14":{"id":295721,"text":"Royalty, patent, technical and copyright fees;","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"15":{"id":295722,"text":"Licensing fees; and","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"16":{"id":295723,"text":"Other similar expenses and costs.\n\t\t\t“Intangible property” means patents, patent applications, trade names, trademarks, service marks, copyrights and similar types of intangible assets.\n\t\t\t“Interest expenses and costs” means amounts directly or indirectly allowed as deductions under § 163 of the Internal Revenue Code for purposes of determining taxable income under the Internal Revenue Code to the extent such expenses and costs are directly or indirectly for, related to, or in connection with the direct or indirect acquisition, use, maintenance, management, ownership, sale, exchange, lease, transfer, or disposition of intangible property.\n\t\t\t“Nonresident estate or trust” means an estate or trust which is not a resident estate or trust.\n\t\t\t“Related entity” means:","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4","next_prefix":"1"},"17":{"id":295724,"text":"A stockholder who is an individual, or a member of the stockholder’s family enumerated in § 318 of the Internal Revenue Code, if the stockholder and the members of the stockholder’s family own, directly, indirectly, beneficially or constructively, in the aggregate, at least 50 percent of the value of the taxpayer’s outstanding stock;","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"5","next_prefix":"2"},"18":{"id":295725,"text":"A stockholder, or a stockholder’s partnership, limited liability company, estate, trust or corporation, if the stockholder and the stockholder’s partnerships, limited liability companies, estates, trusts and corporations own directly, indirectly, beneficially or constructively, in the aggregate, at least 50 percent of the value of the taxpayer’s outstanding stock; or","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"19":{"id":295726,"text":"A corporation, or a party related to the corporation in a manner that would require an attribution of stock from the corporation to the party or from the party to the corporation under the attribution rules of § 318 of the Internal Revenue Code, if the taxpayer owns, directly, indirectly, beneficially or constructively, at least 50 percent of the value of the corporation’s outstanding stock. The attribution rules of § 318 of the Internal Revenue Code shall apply for purposes of determining whether the ownership requirements of this subdivision have been met.\n\t\t\t“Related member” means a person that, with respect to the taxpayer during all or any portion of the taxable year, is a related entity, a component member as defined in § 1563(b) of the Internal Revenue Code, or is a person to or from whom there is attribution of stock ownership in accordance with § 1563(e) of the Internal Revenue Code.\n\t\t\t“Resident” applies only to natural persons and includes, for the purpose of determining liability for the taxes imposed by this chapter upon the income of any taxable year every person domiciled in Virginia at any time during the taxable year and every other person who, for an aggregate of more than 183 days of the taxable year, maintained his place of abode within Virginia, whether domiciled in Virginia or not. The word “resident” shall not include any member of the United States Congress who is domiciled in another state.\n\t\t\t“Resident estate or trust” means:","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"1"},"20":{"id":295727,"text":"The estate of a decedent who at his death was domiciled in the Commonwealth;","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"3","next_prefix":"2"},"21":{"id":295728,"text":"A trust created by will of a decedent who at his death was domiciled in the Commonwealth; or","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"22":{"id":295729,"text":"A trust created by or consisting of property of a person domiciled in the Commonwealth.\n\t\t\t“Sales” means all gross receipts of the corporation not allocated under § 58.1-407, except the sale or other disposition of intangible property shall include only the net gain realized from the transaction.\n\t\t\t“State,” for purposes of Article 10 (§ 58.1-400 et seq.), means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any foreign country.\n\t\t\t“Trust” or “estate” means a trust or estate, or a fiduciary thereof, which is required to file a fiduciary income tax return under the laws of the United States.\n\t\t\t“Virginia fiduciary adjustment” means the net amount of the applicable modifications described in §§ 58.1-322.01, 58.1-322.02, and 58.1-322.04 (including subdivision 1 of § 58.1-322.04 if the estate or trust is a beneficiary of another estate or trust) which relate to items of income, gain, loss or deduction of an estate or trust. The fiduciary adjustment shall not include the modification in § 58.1-322.03, except that the amount of state income taxes excluded from federal taxable income shall be included. The fiduciary adjustment shall also include the modification in subdivision 7 of § 58.1-322.03 regarding the deduction for the purchase of a prepaid tuition contract or contribution to a savings trust account.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2"}},"ancestry":[{"id":13970,"edition_id":1,"name":"General Provisions","identifier":"1","label":"article","depth":4,"order_by":1,"parent_id":13152,"metadata":{},"date_created":"2026-06-26 03:46:27","date_modified":"2026-06-26 03:46:27","permalink":{"id":253269,"object_type":"structure","relational_id":13970,"identifier":"1","token":"58.1\/I\/3\/1","url":"\/58.1\/I\/3\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13152,"edition_id":1,"name":"Income Tax","identifier":"3","label":"chapter","depth":3,"order_by":1,"parent_id":12837,"metadata":{},"date_created":"2026-06-26 03:44:21","date_modified":"2026-06-26 03:44:21","permalink":{"id":253267,"object_type":"structure","relational_id":13152,"identifier":"3","token":"58.1\/I\/3","url":"\/58.1\/I\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12837,"edition_id":1,"name":"Taxes Administered by the Department of Taxation","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:43:55","date_modified":"2026-06-26 03:43:55","permalink":{"id":252075,"object_type":"structure","relational_id":12837,"identifier":"I","token":"58.1\/I","url":"\/58.1\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":251959,"object_type":"structure","relational_id":12703,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":55031,"structure_id":13970,"section_number":"58.1-300","catch_line":"Incomes not subject to local taxation","url":"\/58.1-300\/","token":"58.1\/I\/3\/1\/58.1-300","metadata":false},{"id":75208,"structure_id":13970,"section_number":"58.1-301","catch_line":"(Applicable to taxable years beginning on and after January 1, 2023) Conformity to Internal Revenue Code","url":"\/58.1-301\/","token":"58.1\/I\/3\/1\/58.1-301","metadata":false},{"id":82538,"structure_id":13970,"section_number":"58.1-302","catch_line":"Definitions","url":"\/58.1-302\/","token":"58.1\/I\/3\/1\/58.1-302","metadata":false},{"id":76987,"structure_id":13970,"section_number":"58.1-303","catch_line":"Residency for portion of tax year","url":"\/58.1-303\/","token":"58.1\/I\/3\/1\/58.1-303","metadata":false},{"id":63944,"structure_id":13970,"section_number":"58.1-304","catch_line":"Reserved","url":"\/58.1-304\/","token":"58.1\/I\/3\/1\/58.1-304","metadata":false},{"id":80064,"structure_id":13970,"section_number":"58.1-305","catch_line":"Duties of commissioner of the revenue relating to income tax","url":"\/58.1-305\/","token":"58.1\/I\/3\/1\/58.1-305","metadata":false},{"id":81043,"structure_id":13970,"section_number":"58.1-306","catch_line":"Filing of individual, estate or trust income tax returns with the Department","url":"\/58.1-306\/","token":"58.1\/I\/3\/1\/58.1-306","metadata":false},{"id":83380,"structure_id":13970,"section_number":"58.1-307","catch_line":"Disposition of returns; handling of state income tax payments; audit","url":"\/58.1-307\/","token":"58.1\/I\/3\/1\/58.1-307","metadata":false},{"id":79816,"structure_id":13970,"section_number":"58.1-308","catch_line":"Assessment and payment of deficiency; fraud; penalties","url":"\/58.1-308\/","token":"58.1\/I\/3\/1\/58.1-308","metadata":false},{"id":87093,"structure_id":13970,"section_number":"58.1-309","catch_line":"Refund of overpayment","url":"\/58.1-309\/","token":"58.1\/I\/3\/1\/58.1-309","metadata":false},{"id":57654,"structure_id":13970,"section_number":"58.1-310","catch_line":"Examination of federal returns","url":"\/58.1-310\/","token":"58.1\/I\/3\/1\/58.1-310","metadata":false},{"id":68533,"structure_id":13970,"section_number":"58.1-311","catch_line":"Report of change in federal taxable income","url":"\/58.1-311\/","token":"58.1\/I\/3\/1\/58.1-311","metadata":false},{"id":81874,"structure_id":13970,"section_number":"58.1-311.1","catch_line":"Report of change in taxes paid to other states","url":"\/58.1-311.1\/","token":"58.1\/I\/3\/1\/58.1-311.1","metadata":false},{"id":59617,"structure_id":13970,"section_number":"58.1-311.2","catch_line":"Final determination date","url":"\/58.1-311.2\/","token":"58.1\/I\/3\/1\/58.1-311.2","metadata":false},{"id":59212,"structure_id":13970,"section_number":"58.1-312","catch_line":"Limitations on assessment","url":"\/58.1-312\/","token":"58.1\/I\/3\/1\/58.1-312","metadata":false},{"id":75424,"structure_id":13970,"section_number":"58.1-313","catch_line":"Immediate assessment where collection jeopardized by delay; notice of assessment; termination of taxable period; memorandum of lien","url":"\/58.1-313\/","token":"58.1\/I\/3\/1\/58.1-313","metadata":false},{"id":59234,"structure_id":13970,"section_number":"58.1-314","catch_line":"Lien of jeopardy assessment; notice of lien","url":"\/58.1-314\/","token":"58.1\/I\/3\/1\/58.1-314","metadata":false},{"id":74528,"structure_id":13970,"section_number":"58.1-315","catch_line":"Transitional modifications to Virginia taxable income","url":"\/58.1-315\/","token":"58.1\/I\/3\/1\/58.1-315","metadata":false},{"id":80226,"structure_id":13970,"section_number":"58.1-316","catch_line":"Information reporting on rental payments to nonresident payees; penalties","url":"\/58.1-316\/","token":"58.1\/I\/3\/1\/58.1-316","metadata":false},{"id":73613,"structure_id":13970,"section_number":"58.1-317","catch_line":"Filing of estimated tax by nonresidents upon the sale of real property; penalties","url":"\/58.1-317\/","token":"58.1\/I\/3\/1\/58.1-317","metadata":false},{"id":83774,"structure_id":13970,"section_number":"58.1-318","catch_line":"Investments eligible for tax credits","url":"\/58.1-318\/","token":"58.1\/I\/3\/1\/58.1-318","metadata":false},{"id":59801,"structure_id":13970,"section_number":"58.1-319","catch_line":"Unclaimed tax credits; report","url":"\/58.1-319\/","token":"58.1\/I\/3\/1\/58.1-319","metadata":false}],"previous_section":{"id":75208,"structure_id":13970,"section_number":"58.1-301","catch_line":"(Applicable to taxable years beginning on and after January 1, 2023) Conformity to Internal Revenue Code","url":"\/58.1-301\/","token":"58.1\/I\/3\/1\/58.1-301","metadata":false},"next_section":{"id":76987,"structure_id":13970,"section_number":"58.1-303","catch_line":"Residency for portion of tax year","url":"\/58.1-303\/","token":"58.1\/I\/3\/1\/58.1-303","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-302\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 19 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1972, chapters 310 and 827; in 1973, chapters 198, 345, and 458; in 1974, chapter 682; in 1975, chapter 46; in 1976, chapters 528, 694, and 781; in 1977, chapters 297 and 612; in 1978, chapters 67 and 158; in 1979, chapters 226, 404, and 596; in 1981, chapters 402 and 414; in 1982, chapter 633; in 1983, chapters 452 and 472; in 1984, chapters 153, 162, 636, 674, 675, and 729; in 1990, chapter 294; in 1992, chapter 678; in 1995, chapter 602<\/a>; in 2000, chapters 382<\/a> and 400<\/a>; in 2005, chapter 48<\/a>; in 2017, chapter 444<\/a>; in 2019, chapters 23<\/a> and 192<\/a>.<\/p>","references":[{"id":84816,"section_number":"28.2-201.1","catch_line":"Commission to administer grants to individuals transferring oysters to a state-managed sanctuary; fund","order_by":null,"url":"\/28.2-201.1\/"},{"id":61156,"section_number":"46.2-328.3","catch_line":"Driver privilege cards and permits","order_by":null,"url":"\/46.2-328.3\/"},{"id":86626,"section_number":"46.2-345.3","catch_line":"Issuance of identification privilege cards; fee; confidentiality; penalties","order_by":null,"url":"\/46.2-345.3\/"},{"id":57817,"section_number":"58.1-3","catch_line":"Secrecy of information; penalties","order_by":null,"url":"\/58.1-3\/"},{"id":79637,"section_number":"58.1-341.2","catch_line":"Returns of individuals; notification of tax return data breach","order_by":null,"url":"\/58.1-341.2\/"},{"id":75466,"section_number":"58.1-348.1","catch_line":"Fraudulent assistance; penalty","order_by":null,"url":"\/58.1-348.1\/"},{"id":67971,"section_number":"58.1-396","catch_line":"Definitions","order_by":null,"url":"\/58.1-396\/"},{"id":56837,"section_number":"58.1-422.1","catch_line":"Retail companies; apportionment","order_by":null,"url":"\/58.1-422.1\/"},{"id":79905,"section_number":"58.1-439.24","catch_line":"Donations by individuals","order_by":null,"url":"\/58.1-439.24\/"},{"id":69106,"section_number":"58.1-442","catch_line":"Separate, combined, or consolidated returns of affiliated corporations","order_by":null,"url":"\/58.1-442\/"}],"refers_to":[{"id":76417,"section_number":"58.1-101","catch_line":"Waiver of time limitation on assessment of taxes","order_by":null,"url":"\/58.1-101\/"},{"id":72336,"section_number":"58.1-1812","catch_line":"Assessment of omitted taxes by the Department of Taxation","order_by":null,"url":"\/58.1-1812\/"},{"id":79327,"section_number":"58.1-220","catch_line":"Waiver of time limitation on assessment of omitted or additional state taxes","order_by":null,"url":"\/58.1-220\/"},{"id":85168,"section_number":"58.1-322.01","catch_line":"Virginia taxable income; additions","order_by":null,"url":"\/58.1-322.01\/"},{"id":81784,"section_number":"58.1-322.02","catch_line":"Virginia taxable income; subtractions","order_by":null,"url":"\/58.1-322.02\/"},{"id":79461,"section_number":"58.1-322.03","catch_line":"Virginia taxable income; deductions","order_by":null,"url":"\/58.1-322.03\/"},{"id":67865,"section_number":"58.1-322.04","catch_line":"Virginia taxable income; additional modifications","order_by":null,"url":"\/58.1-322.04\/"},{"id":60955,"section_number":"58.1-400","catch_line":"Imposition of tax","order_by":null,"url":"\/58.1-400\/"},{"id":56963,"section_number":"58.1-407","catch_line":"How dividends allocated","order_by":null,"url":"\/58.1-407\/"}],"permalink":{"id":253279,"object_type":"law","relational_id":82538,"identifier":"58.1-302","token":"58.1\/I\/3\/1\/58.1-302","url":"\/58.1-302\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-302\/","token":"58.1\/I\/3\/1\/58.1-302","dublin_core":{"Title":"Definitions","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-302","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

For the purpose of this chapter and unless otherwise required by the context:\n\t\t“Affiliated<\/span>” means two or more corporations<\/span> subject to Virginia income taxes whose relationship to each other is such that (i) one corporation<\/span> owns at least 80 percent of the voting stock of the other or others or (ii) at least 80 percent of the voting stock of two or more corporations<\/span> is owned by the same interests.\n\t\t“Compensation<\/span>” means wages, salaries, commissions and any other form of remuneration paid or accrued to employees for personal services.\n\t\t“Corporation<\/span>” includes associations, joint stock companies and insurance companies.\n\t\t“Domicile<\/span>” means the permanent place of residence of a taxpayer<\/span> and the place to which he intends to return even though he may actually reside elsewhere. In determining domicile<\/span>, consideration may be given to the applicant’s expressed intent<\/span>, conduct, and all attendant circumstances including, but not limited to, financial independence, business pursuits, employment, income sources, residence for federal income tax purposes, marital status, residence of parents, spouse and children, if any, leasehold, sites of personal and real property owned by the applicant, motor vehicle and other personal property registration, residence for purposes of voting as proven by registration to vote, if any, and such other factors as may reasonably be deemed necessary to determine the person’s domicile<\/span>.\n\t\t“Foreign source income” means:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Interest, other than interest derived from sources within the United States; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Dividends, other than dividends derived from sources within the United States; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Rents, royalties, license, and technical fees from property located or services performed without the United States or from any interest in such property, including rents, royalties, or fees for the use of or the privilege<\/span> of using without the United States any patents, copyrights, secret processes and formulas, good will, trademarks, trade brands, franchises, and other like properties; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Gains, profits, or other income from the sale of intangible or real property located without the United States; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> The amount of an individual<\/span>’s share of net income attributable to a foreign source qualified business unit of an electing small business corporation<\/span> (S corporation<\/span>). For purposes of this subsection, qualified business unit shall be defined by § 989 of the Internal Revenue Code, and the source of such income shall be determined in accordance with §§ 861, 862 and 987 of the Internal Revenue Code.\n\t\t\tIn determining the source of “foreign source income,” the provisions of §§ 861, 862, and 863 of the Internal Revenue Code shall be applied except as specifically provided in subsection 5 above.\n\t\t\t“Income and deductions from Virginia sources” includes: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Items of income, gain, loss and deduction attributable to:\n\t\t\ta. The ownership of any interest in real or tangible personal property in Virginia;\n\t\t\tb. A business, trade, profession or occupation carried on in Virginia; or\n\t\t\tc. Prizes paid by the Virginia Lottery Department<\/span>, and gambling winnings from wagers placed or paid at a location in Virginia. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Income from intangible personal property, including annuities, dividends, interest, royalties and gains from the disposition<\/span> of intangible personal property to the extent that such income is from property employed by the taxpayer<\/span> in a business, trade, profession, or occupation carried on in Virginia.\n\t\t\t“Income tax return preparer<\/span>” means any person who prepares for compensation<\/span>, or who employs one or more persons to prepare for compensation<\/span>, any return of tax imposed by this chapter or any claim for refund of tax. For purposes of the preceding sentence, the preparation for compensation<\/span> of any portion of a return or claim for refund shall be treated as if it were the preparation of the return or claim for refund. A person shall not be an “income tax return preparer<\/span>” merely because the person: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Furnishes typing, reproducing, or other mechanical assistance; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Prepares a return or claim for refund of the employer (or of an officer or employee of the employer) by whom he is regularly and continuously employed; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Prepares as a fiduciary a return or claim for refund for any person; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Prepares an application for correction of an erroneous assessment or a protective claim for refund for a taxpayer<\/span> in response to any assessment pursuant to § 58.1-1812<\/a> issued to the taxpayer<\/span> or in response to any waiver<\/span> pursuant to § 58.1-101<\/a> or 58.1-220<\/a> after the commencement of an audit of the taxpayer<\/span> or another taxpayer<\/span> if a determination in such audit of such other taxpayer<\/span> directly or indirectly affects the tax liability of such taxpayer<\/span>.\n\t\t\t“Individual<\/span>” means all natural persons whether married or unmarried and fiduciaries acting for natural persons, but not fiduciaries acting for trusts<\/span> or estates<\/span>.\n\t\t\t“Intangible expenses and costs” means: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Expenses, losses and costs for, related to, or in connection directly or indirectly with the direct or indirect acquisition, use, maintenance or management, ownership, sale, exchange, lease, transfer, or any other disposition<\/span> of intangible property<\/span> to the extent such amounts are allowed as deductions or costs in determining taxable income; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Losses related to or incurred in connection directly or indirectly with factoring transactions or discounting transactions; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Royalty, patent, technical and copyright fees; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Licensing fees; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Other similar expenses and costs.\n\t\t\t“Intangible property<\/span>” means patents, patent applications, trade names, trademarks, service marks, copyrights and similar types of intangible assets<\/span>.\n\t\t\t“Interest expenses and costs<\/span>” means amounts directly or indirectly allowed as deductions under § 163 of the Internal Revenue Code for purposes of determining taxable income under the Internal Revenue Code to the extent such expenses and costs are directly or indirectly for, related to, or in connection with the direct or indirect acquisition, use, maintenance, management, ownership, sale, exchange, lease, transfer, or disposition<\/span> of intangible property<\/span>.\n\t\t\t“Nonresident estate or trust<\/span>” means an estate or trust which is not a resident<\/span> estate or trust.\n\t\t\t“Related entity” means: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> A stockholder who is an individual<\/span>, or a member of the stockholder’s family enumerated in § 318 of the Internal Revenue Code, if the stockholder and the members of the stockholder’s family own, directly, indirectly, beneficially or constructively, in the aggregate, at least 50 percent of the value of the taxpayer<\/span>’s outstanding stock; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> A stockholder, or a stockholder’s partnership, limited liability company, estate, trust or corporation<\/span>, if the stockholder and the stockholder’s partnerships, limited liability companies, estates<\/span>, trusts<\/span> and corporations<\/span> own directly, indirectly, beneficially or constructively, in the aggregate, at least 50 percent of the value of the taxpayer<\/span>’s outstanding stock; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> A corporation<\/span>, or a party<\/span> related to the corporation<\/span> in a manner that would require an attribution of stock from the corporation<\/span> to the party<\/span> or from the party<\/span> to the corporation<\/span> under the attribution rules of § 318 of the Internal Revenue Code, if the taxpayer<\/span> owns, directly, indirectly, beneficially or constructively, at least 50 percent of the value of the corporation<\/span>’s outstanding stock. The attribution rules of § 318 of the Internal Revenue Code shall apply for purposes of determining whether the ownership requirements of this subdivision have been met.\n\t\t\t“Related member<\/span>” means a person that, with respect to the taxpayer<\/span> during all or any portion of the taxable year, is a related entity, a component member as defined in § 1563(b) of the Internal Revenue Code, or is a person to or from whom there is attribution of stock ownership in accordance with § 1563(e) of the Internal Revenue Code.\n\t\t\t“Resident<\/span>” applies only to natural persons and includes, for the purpose of determining liability for the taxes imposed by this chapter upon the income of any taxable year every person domiciled in Virginia at any time during the taxable year and every other person who, for an aggregate of more than 183 days of the taxable year, maintained his place of abode within Virginia, whether domiciled in Virginia or not. The word “resident<\/span>” shall not include any member of the United States Congress who is domiciled in another state.\n\t\t\t“Resident<\/span> estate or trust” means: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The estate of a decedent who at his death was domiciled in the Commonwealth; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> A trust created by will of a decedent who at his death was domiciled in the Commonwealth; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> A trust created by or consisting of property of a person domiciled in the Commonwealth.\n\t\t\t“Sales<\/span>” means all gross receipts of the corporation<\/span> not allocated under § 58.1-407<\/a>, except the sale or other disposition<\/span> of intangible property<\/span> shall include only the net gain realized from the transaction.\n\t\t\t“State,” for purposes of Article 10 (§ 58.1-400<\/a> et seq.), means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession<\/span> of the United States, and any foreign country.\n\t\t\t“Trust” or “estate” means a trust or estate, or a fiduciary thereof, which is required to file a fiduciary income tax return under the laws<\/span> of the United States.\n\t\t\t“Virginia fiduciary adjustment<\/span>” means the net amount of the applicable modifications described in §§ 58.1-322.01<\/a>, 58.1-322.02<\/a>, and 58.1-322.04<\/a> (including subdivision 1 of § 58.1-322.04<\/a> if the estate or trust is a beneficiary of another estate or trust) which relate to items of income, gain, loss or deduction of an estate or trust. The fiduciary adjustment shall not include the modification in § 58.1-322.03<\/a>, except that the amount of state income taxes excluded from federal taxable income shall be included. The fiduciary adjustment shall also include the modification in subdivision 7 of § 58.1-322.03<\/a> regarding the deduction for the purchase of a prepaid tuition contract<\/span> or contribution to a savings trust account. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDEFINITIONS (\u00a7 58.1-302)\n\nFor the purpose of this chapter and unless otherwise required by the context:\n\t\t“Affiliated” means two or more corporations subject to Virginia\nincome taxes whose relationship to each other is such that (i) one corporation\nowns at least 80 percent of the voting stock of the other or others or (ii) at\nleast 80 percent of the voting stock of two or more corporations is owned by the\nsame interests.\n\t\t“Compensation” means wages, salaries, commissions and any other\nform of remuneration paid or accrued to employees for personal services.\n\t\t“Corporation” includes associations, joint stock companies and\ninsurance companies.\n\t\t“Domicile” means the permanent place of residence of a taxpayer\nand the place to which he intends to return even though he may actually reside\nelsewhere. In determining domicile, consideration may be given to the\napplicant’s expressed intent, conduct, and all attendant circumstances\nincluding, but not limited to, financial independence, business pursuits,\nemployment, income sources, residence for federal income tax purposes, marital\nstatus, residence of parents, spouse and children, if any, leasehold, sites of\npersonal and real property owned by the applicant, motor vehicle and other\npersonal property registration, residence for purposes of voting as proven by\nregistration to vote, if any, and such other factors as may reasonably be deemed\nnecessary to determine the person’s domicile.\n\t\t“Foreign source income” means:\n\n1. Interest, other than interest derived from sources within the United States;\n\n2. Dividends, other than dividends derived from sources within the United\nStates;\n\n3. Rents, royalties, license, and technical fees from property located or\nservices performed without the United States or from any interest in such\nproperty, including rents, royalties, or fees for the use of or the privilege of\nusing without the United States any patents, copyrights, secret processes and\nformulas, good will, trademarks, trade brands, franchises, and other like\nproperties;\n\n4. Gains, profits, or other income from the sale of intangible or real property\nlocated without the United States; and\n\n5. The amount of an individual’s share of net income attributable to a\nforeign source qualified business unit of an electing small business corporation\n(S corporation). For purposes of this subsection, qualified business unit shall\nbe defined by § 989 of the Internal Revenue Code, and the source of such\nincome shall be determined in accordance with §§ 861, 862 and 987 of\nthe Internal Revenue Code.\n\t\t\tIn determining the source of “foreign source income,” the\nprovisions of §§ 861, 862, and 863 of the Internal Revenue Code shall\nbe applied except as specifically provided in subsection 5 above.\n\t\t\t“Income and deductions from Virginia sources” includes:\n\n1. Items of income, gain, loss and deduction attributable to:\n\t\t\ta. The ownership of any interest in real or tangible personal property in\nVirginia;\n\t\t\tb. A business, trade, profession or occupation carried on in Virginia; or\n\t\t\tc. Prizes paid by the Virginia Lottery Department, and gambling winnings from\nwagers placed or paid at a location in Virginia.\n\n2. Income from intangible personal property, including annuities, dividends,\ninterest, royalties and gains from the disposition of intangible personal\nproperty to the extent that such income is from property employed by the\ntaxpayer in a business, trade, profession, or occupation carried on in Virginia.\n\t\t\t“Income tax return preparer” means any person who prepares for\ncompensation, or who employs one or more persons to prepare for compensation,\nany return of tax imposed by this chapter or any claim for refund of tax. For\npurposes of the preceding sentence, the preparation for compensation of any\nportion of a return or claim for refund shall be treated as if it were the\npreparation of the return or claim for refund. A person shall not be an\n“income tax return preparer” merely because the person:\n\n1. Furnishes typing, reproducing, or other mechanical assistance;\n\n2. Prepares a return or claim for refund of the employer (or of an officer or\nemployee of the employer) by whom he is regularly and continuously employed;\n\n3. Prepares as a fiduciary a return or claim for refund for any person; or\n\n4. Prepares an application for correction of an erroneous assessment or a\nprotective claim for refund for a taxpayer in response to any assessment\npursuant to § 58.1-1812 issued to the taxpayer or in response to any waiver\npursuant to § 58.1-101 or 58.1-220 after the commencement of an audit of\nthe taxpayer or another taxpayer if a determination in such audit of such other\ntaxpayer directly or indirectly affects the tax liability of such taxpayer.\n\t\t\t“Individual” means all natural persons whether married or\nunmarried and fiduciaries acting for natural persons, but not fiduciaries acting\nfor trusts or estates.\n\t\t\t“Intangible expenses and costs” means:\n\n1. Expenses, losses and costs for, related to, or in connection directly or\nindirectly with the direct or indirect acquisition, use, maintenance or\nmanagement, ownership, sale, exchange, lease, transfer, or any other disposition\nof intangible property to the extent such amounts are allowed as deductions or\ncosts in determining taxable income;\n\n2. Losses related to or incurred in connection directly or indirectly with\nfactoring transactions or discounting transactions;\n\n3. Royalty, patent, technical and copyright fees;\n\n4. Licensing fees; and\n\n5. Other similar expenses and costs.\n\t\t\t“Intangible property” means patents, patent applications, trade\nnames, trademarks, service marks, copyrights and similar types of intangible\nassets.\n\t\t\t“Interest expenses and costs” means amounts directly or\nindirectly allowed as deductions under § 163 of the Internal Revenue Code\nfor purposes of determining taxable income under the Internal Revenue Code to\nthe extent such expenses and costs are directly or indirectly for, related to,\nor in connection with the direct or indirect acquisition, use, maintenance,\nmanagement, ownership, sale, exchange, lease, transfer, or disposition of\nintangible property.\n\t\t\t“Nonresident estate or trust” means an estate or trust which is\nnot a resident estate or trust.\n\t\t\t“Related entity” means:\n\n1. A stockholder who is an individual, or a member of the stockholder’s\nfamily enumerated in § 318 of the Internal Revenue Code, if the stockholder\nand the members of the stockholder’s family own, directly, indirectly,\nbeneficially or constructively, in the aggregate, at least 50 percent of the\nvalue of the taxpayer’s outstanding stock;\n\n2. A stockholder, or a stockholder’s partnership, limited liability\ncompany, estate, trust or corporation, if the stockholder and the\nstockholder’s partnerships, limited liability companies, estates, trusts\nand corporations own directly, indirectly, beneficially or constructively, in\nthe aggregate, at least 50 percent of the value of the taxpayer’s\noutstanding stock; or\n\n3. A corporation, or a party related to the corporation in a manner that would\nrequire an attribution of stock from the corporation to the party or from the\nparty to the corporation under the attribution rules of § 318 of the\nInternal Revenue Code, if the taxpayer owns, directly, indirectly, beneficially\nor constructively, at least 50 percent of the value of the corporation’s\noutstanding stock. The attribution rules of § 318 of the Internal Revenue\nCode shall apply for purposes of determining whether the ownership requirements\nof this subdivision have been met.\n\t\t\t“Related member” means a person that, with respect to the\ntaxpayer during all or any portion of the taxable year, is a related entity, a\ncomponent member as defined in § 1563(b) of the Internal Revenue Code, or\nis a person to or from whom there is attribution of stock ownership in\naccordance with § 1563(e) of the Internal Revenue Code.\n\t\t\t“Resident” applies only to natural persons and includes, for the\npurpose of determining liability for the taxes imposed by this chapter upon the\nincome of any taxable year every person domiciled in Virginia at any time during\nthe taxable year and every other person who, for an aggregate of more than 183\ndays of the taxable year, maintained his place of abode within Virginia, whether\ndomiciled in Virginia or not. The word “resident” shall not include\nany member of the United States Congress who is domiciled in another state.\n\t\t\t“Resident estate or trust” means:\n\n1. The estate of a decedent who at his death was domiciled in the Commonwealth;\n\n2. A trust created by will of a decedent who at his death was domiciled in the\nCommonwealth; or\n\n3. A trust created by or consisting of property of a person domiciled in the\nCommonwealth.\n\t\t\t“Sales” means all gross receipts of the corporation not allocated\nunder § 58.1-407, except the sale or other disposition of intangible\nproperty shall include only the net gain realized from the transaction.\n\t\t\t“State,” for purposes of Article 10 (§ 58.1-400 et seq.),\nmeans any state of the United States, the District of Columbia, the Commonwealth\nof Puerto Rico, any territory or possession of the United States, and any\nforeign country.\n\t\t\t“Trust” or “estate” means a trust or estate, or a\nfiduciary thereof, which is required to file a fiduciary income tax return under\nthe laws of the United States.\n\t\t\t“Virginia fiduciary adjustment” means the net amount of the\napplicable modifications described in §§ 58.1-322.01, 58.1-322.02, and\n58.1-322.04 (including subdivision 1 of § 58.1-322.04 if the estate or\ntrust is a beneficiary of another estate or trust) which relate to items of\nincome, gain, loss or deduction of an estate or trust. The fiduciary adjustment\nshall not include the modification in § 58.1-322.03, except that the amount\nof state income taxes excluded from federal taxable income shall be included.\nThe fiduciary adjustment shall also include the modification in subdivision 7 of\n§ 58.1-322.03 regarding the deduction for the purchase of a prepaid tuition\ncontract or contribution to a savings trust account.\n\nHISTORY: Code 1950, \u00a7\u00a7 58-151.02, 58-151.013, 58-151.023, 58-151.034,\n58-151.081; 1971, Ex. Sess., c. 171; 1972, cc. 310, 827; 1973, cc. 198, 345,\n458; 1974, c. 682; 1975, c. 46; 1976, cc. 528, 694, 781; 1977, cc. 297, 612;\n1978, cc. 67, 158; 1979, cc. 226, 404, 596; 1981, cc. 402, 414; 1982, c. 633;\n1983, cc. 452, 472; 1984, cc. 153, 162, 636, 674, 675, 729; 1990, c. 294; 1992,\nc. 678; 1995, c. 602; 2000, cc. 382, 400; 2004, Sp. Sess. I, c. 3; 2005, c. 48;\n2017, c. 444; 2019, cc. 23, 192.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}