Delaware and the Passive Investment Company.
- Resource Type
- Article
- Authors
- Dyreng, Scott D.; Lindsey, Bradley P.; Thornock, Jacob R.
- Source
- CPA Journal. Oct2016, Vol. 86 Issue 10, p44-47. 4p.
- Subject
- *PASSIVE investment companies
*INTANGIBLE property
*CORPORATE accounting
*FINANCIAL planning
*TAX exemption
- Language
- ISSN
- 0732-8435
The article discusses the advantages of the use of passive investment companies (PIC) to exempt income gained through intangible assets in Delaware. It mentions the provision of the Delaware General Corporation Law (DGCL), which exempts income of corporations whose activities in the state are through the maintenance and management of intangible assets. It discusses the requirements by which PIC can be used to be exempted from income tax including having operations in other high-tax states.