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Tax Changes: Preventing Tax Avoidance by Foreign Companies

This act aims to modify the Base Erosion and Anti-Abuse Tax (BEAT) rules to prevent tax avoidance by certain foreign companies operating in jurisdictions with extraterritorial taxes. In practice, this means that companies controlled by foreign entities that benefit from certain tax breaks abroad may be subject to new rules, potentially increasing their tax burden in the U.S. The goal is to ensure all companies pay their fair share of taxes, which can indirectly affect public financial stability.
Key points
Introduces new rules for foreign companies controlled by entities from countries with so-called extraterritorial taxes.
50% of such companies' cost of goods sold will be treated as a base erosion tax benefit, potentially increasing their BEAT.
The changes apply to tax years beginning after the act's enactment date.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_2423
Sponsor: Rep. Estes, Ron [R-KS-4]
Process start date: 2025-03-27
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Summarized by: gemini-2.5-flash
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Unfair Tax Prevention Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_2423.

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 2025-03-27.

What are the main provisions?

Key points include:

  • Introduces new rules for foreign companies controlled by entities from countries with so-called extraterritorial taxes.
  • 50% of such companies' cost of goods sold will be treated as a base erosion tax benefit, potentially increasing their BEAT.
  • The changes apply to tax years beginning after the act'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. Estes, Ron [R-KS-4].

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