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Tax Changes: Exclusions for Foreign Related Party Payments

This bill amends international tax rules so that certain payments between related foreign entities are not considered tax avoidance if they are already sufficiently taxed abroad. This aims to simplify accounting for global companies, potentially impacting their operating costs and competitiveness.
Key points
Payments to foreign related parties will not be treated as base erosion payments if subject to at least a 15% foreign income tax.
Companies can prove the foreign tax rate using financial statements, with specific adjustments.
These new rules will apply to tax years beginning after the bill's enactment date.
article Official text account_balance Process page
Introduced
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Additional Information
Print number: 119_HR_1911
Sponsor: Rep. Conaway, Herbert [D-NJ-3]
Process start date: 2025-03-06
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Summarized by: gemini-2.5-flash
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 119_HR_1911.

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 2025-03-06.

What are the main provisions?

Key points include:

  • Payments to foreign related parties will not be treated as base erosion payments if subject to at least a 15% foreign income tax.
  • Companies can prove the foreign tax rate using financial statements, with specific adjustments.
  • These new rules will apply to tax years beginning after the bill's enactment date.
What is the specific legal status?

The current status is Introduced.

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. Conaway, Herbert [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 2025-12-22.

CATEGORIES

Taxes Economy