                                 CODE OF VIRGINIA

EXEMPTIONS AND EXCLUSIONS (§ 58.1-401)

No tax levied pursuant to § 58.1-400, 58.1-400.1 or 58.1-400.2 is imposed on:

1. A public service corporation to the extent such corporation is subject to the
license tax on gross receipts contained in Chapter 26 (&#xA7; 58.1-2600 et seq.)
of this title;

2. Insurance companies to the extent such company is subject to the license tax
on gross premiums under Chapter 25 (&#xA7; 58.1-2500 et seq.) of this title and
reciprocal or interinsurance exchanges which pay a premium tax to the
Commonwealth as provided by law;

3. State and national banks, banking associations and trust companies to the
extent such companies are subject to the bank franchise tax on net capital;
			3a. Credit unions organized and conducted as such under the laws of the
Commonwealth or under the laws of the United States;

4. Electing small business corporations (S corporations);

5. Religious, educational, benevolent and other corporations not organized or
conducted for pecuniary profit which by reason of their purposes or activities
are exempt from income tax under the laws of the United States, except those
organizations which have unrelated business income or other taxable income under
such laws, except as provided in &#xA7; 58.1-400.2;

6. Telephone companies chartered in the Commonwealth which are exclusively a
local mutual association and are not designated to accumulate profits for the
benefit of, or to pay dividends to, the stockholders or members thereof;

7. A corporation that has contracted with a commercial printer for printing and
that is not otherwise taxable shall not become taxable by reason of: (i) the
ownership or leasing by that corporation of tangible personal property located
at the Virginia premises of the commercial printer and used solely in connection
with the printing contract with such person; (ii) the sale by that corporation
at another location of property of any kind printed at and shipped or
distributed from the Virginia premises of the commercial printer; (iii) the
activities in connection with the printing contract with such person of any kind
performed by or on behalf of that corporation at the Virginia premises of the
commercial printer; and (iv) the activities in connection with the printing
contract with such person performed by the commercial printer for or on behalf
of that corporation;

8. Foreign sales corporations (FSC) and any income attributable to an FSC under
the rules relating to the taxation of an FSC in Part III, Subpart C of the
Internal Revenue Code (&#xA7; 921 et seq.) and the regulations thereunder; and

9. For taxable years beginning on or after January 1, 2014, domestic
international sales corporations (DISC) under the rules relating to the taxation
of a DISC in Part IV, Subpart A of the Internal Revenue Code (&#xA7; 991 et
seq.) and the regulations thereunder.

HISTORY: Code 1950, § 58-151.03; 1971, Ex. Sess., c. 171; 1972, c. 310; 1978,
cc. 159, 796; 1981, c. 402; 1984, c. 675; 1985, c. 221; 1987, c. 484; 1988, cc.
581, 899; 1995, cc. 422, 472; 1999, c. 971; 2014, cc. 26, 186.