No Tax Breaks for Outsourcing Act
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To President
- Became Law
Overview
The No Tax Breaks for Outsourcing Act aims to close loopholes that allow companies to shift profits overseas and avoid U.S. taxes. It modifies rules related to foreign-derived income, country-by-country taxation, and the deduction of interest paid to foreign affiliates. Specifically, it eliminates certain tax breaks for offshore activities, requires current year inclusion of net CFC tested income, and adjusts rules for international financial reporting groups and inverted corporations. The bill also addresses the treatment of foreign corporations managed and controlled in the U.S. as domestic corporations.
Key provisions
- Eliminates tax-free deemed return on investments for CFCs.
- Requires current year inclusion of net CFC tested income.
- Applies a country-by-country limitation on foreign tax credits based on CFC taxable units.
- Limits the deduction of interest by domestic corporations that are members of an international financial reporting group.
- Modifies rules relating to inverted corporations, potentially impacting corporate structures.
- Treats foreign corporations managed and controlled in the U.S. as domestic corporations for tax purposes.
- Replaces the reduced rate of tax on net CFC tested income and foreign-derived intangible income with a standard rate.
- Increases the deemed paid credit for taxes properly attributable to tested income.
Who is affected
- Multinational corporations
- Foreign corporations
Bill text
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Sponsors
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21 on record
Primary sponsor
Cosponsors
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