Qualified Possession Wages Law and Legal Definition

Qualified possession wages means wages paid or incurred by a possession corporation with respect to services of any employee during a taxable year. Provided, the services performed by such employee in the corporation must be in connection with the active conduct of a trade or business within a possession of the U.S. during the taxable year. Further, such services must be performed while the principal place of employment of such employee is within such possession. However, qualified possession wages shall not include any wages paid to employees who are assigned by the employer to perform services for another person, unless the principal trade or business of the employer is to make employees available for temporary periods to other persons in return for compensation.