IRS Issues Tax Rate Guidance for Stockpiled Foreign Income
- Guidance aims to address different rates for cash, non-cash
- New tax law sets discount rates for accumulated foreign income
The Internal Revenue Service (IRS) headquarters stands in Washington, D.C.
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The Internal Revenue Service and Treasury Department will generally allow existing loans and other related-party transactions involving the overseas affiliates of multinational corporations to be taxed at the lower of two preferential rates, according to an official notice.
The notice, released Friday afternoon, says the IRS and Treasury “intend to issue” new regulations clarifying how multinational companies must compute tax bills on the foreign earnings they have accumulated to date.