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Tax Relief for Multinational Companies Paying High Foreign Taxes.

This bill modifies the taxation rules for large US corporations making payments to their foreign affiliates. If the foreign affiliate already pays an effective income tax rate of at least 15% abroad, these payments will not be subject to the US Base Erosion and Anti-Abuse Tax (BEAT). This change aims to prevent double taxation and align US law with global minimum tax standards.
Key points
US companies avoid a specific anti-abuse tax on payments to foreign affiliates if those affiliates pay at least a 15% foreign income tax rate.
The change primarily affects large multinational corporations, simplifying international operations and reducing potential tax burdens.
The Treasury Secretary will issue regulations to determine the effective foreign tax rate and prevent tax avoidance.
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Additional Information
Print number: 118_HR_8895
Sponsor: Rep. Kim, Andy [D-NJ-3]
Process start date: 2024-06-28
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Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

To amend the Internal Revenue Code of 1986 to provide that certain payments to foreign related parties subject to sufficient foreign tax are not treated as base erosion payments.

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_8895.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2024-06-28.

What are the main provisions?

Key points include:

  • US companies avoid a specific anti-abuse tax on payments to foreign affiliates if those affiliates pay at least a 15% foreign income tax rate.
  • The change primarily affects large multinational corporations, simplifying international operations and reducing potential tax burdens.
  • The Treasury Secretary will issue regulations to determine the effective foreign tax rate and prevent tax avoidance.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Kim, Andy [D-NJ-3].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

CATEGORIES

Taxes Economy