Dividends |
1099 Due Date |
R & E Tax Credit | Section 482 |
Section 475 |
Subpart F |
Tax Straddle |
US-Japan Tax Treaty
SUBPART F INTERNATIONAL TAX REFORMS
INDUSTRY UPDATE: House Ways And Means Committee Votes To Make Permanent Crucial Reforms Of The International Tax Rules For Financial Services Firms
Late on October 12 the House Ways and Means Committee voted 23-14 to approve H.R. 3090, the "Economic Security and Recovery Act of 2001." Included in this package of tax changes is a provision long sought by the Securities Industry Association to make permanent the temporary reforms of the U.S. international tax rules due to expire at the end of 2001 benefitting financial services firms. Under the provision approved by the Ways and Means Committee, U.S.-based financial services firms are permanently accorded the same tax treatment long provided to U.S.-based manufacturers and other businesses. Instead of U.S. tax being immediately due on the active business income earned by their foreign subsidiaries, tax on this income is temporarily delayed until the earnings are returned to the U.S. parent company. Congressional adoption of this change would represent a major policy advance and bring the U.S. tax treatment of U.S.-based financial services firms closer to that provided by our major trading partners to our foreign-based competitors. The House is expected to consider this legislation as early as this week.
For more information on the above, contact Patti McClanahan, pmcclanahan@sifma.org.
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