Washington D.C. – The National Foreign Trade Council (NFTC) today urged Treasury to delay the applicability of the final foreign tax credit (FTC) regulations for at least a year.
In a letter addressed to Secretary Janet Yellen, NFTC President Jake Colvin outlined NFTC’s concerns regarding the final foreign tax credit regulations as well as the positive effects of a delay, including preventing an unnecessarily chaotic first quarter filing season for publicly traded U.S. companies and permitting Treasury more time to assess how these rules might interact with new foreign taxes being contemplated as part at the OECD Inclusive Framework’s Pillar One and Pillar Two work.
The letter requests that “Treasury reconsider several aspects of the regulations that will result in double taxation on the international operations of U.S. companies in circumstances that seem unintended or underappreciated by the regulation drafters, and will further destabilize the fundamental international tax rules that apply to U.S. companies and jeopardize the ability of U.S. companies to compete with multinationals based in other countries.”
Full text of the letter can be found here.
About the NFTC
Serving America’s Global Businesses Since 1914 – The National Foreign Trade Council (www.nftc.org) is a leading business organization advocating an open, rules- based global trading system. Founded in 1914 by a broad-based group of American companies, the NFTC now serves 100 member companies through its office in Washington D.C
