Sec. 7. Foreign licensees subject to United States Federal income tax
561 words·~3 min read·
/bill/113/hr/3491/ih/section-7A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 872 is amended by inserting after subsection
(b)the following new subsection: For purposes of this title, a nonresident alien individual who is a licensee or operates an Internet gambling facility for which a license is required under section 103 of the Internet Gambling Regulation and Enforcement Act of 2013 at any time during a taxable year shall be deemed to be engaged in the conduct of a trade or business within the United States during the taxable year. For purposes of this title, all gross income related to domestic wagers that are placed over the Internet shall be deemed to be effectively connected with the licensee’s trade or business within the United States. For purposes of any applicable United States income tax treaty, a nonresident alien individual who is a licensee or operates an Internet gambling facility for which a license is required under section 103 of the Internet Gambling Regulation and Enforcement Act of 2013 at any time during a taxable year shall be deemed to have a permanent establishment located in the United States, and all gross income arising from domestic wagers that are placed over the Internet shall be treated as attributable to the permanent establishment of such nonresident alien individual. For purposes of this subsection— The term domestic wager means a wager placed by a person located in the United States. The term wager has the meaning given the term bet or wager in section 102(2) of the Internet Gambling Regulation and Enforcement Act of 2013. The term Internet has the meaning given in section 5362(5) of title 31, United States Code. . Section 882 is amended by— redesignating subsections
(e)and
(f)as subsections
(f)and (g), respectively, and by inserting after subsection
(d)the following: For purposes of this title, a foreign corporation that is a licensee or operates an Internet gambling facility for which a license is required under section 103 of the Internet Gambling Regulation and Enforcement Act of 2013 at any time during a taxable year shall be deemed to be engaged in the conduct of a trade or business within the United States during the taxable year. For purposes of this title, all gross income related to domestic wagers that are placed over the Internet shall be deemed to be effectively connected with the licensee’s trade or business within the United States. For purposes of any applicable United States income tax treaty, a foreign corporation that is a licensee or operates an Internet gambling facility for which a license is required under section 103 of the Internet Gambling Regulation and Enforcement Act of 2013 at any time during a taxable year shall be deemed to have a permanent establishment located in the United States, and all gross income arising from domestic wagers that are placed over the Internet shall be treated as attributable to the permanent establishment of such foreign corporation. The term domestic wager means a wager placed by a person located in the United States. The term wager has the meaning given the term bet or wager in section 102(2) of the Internet Gambling Regulation and Enforcement Act of 2013. The term Internet has the meaning given in section 5362(5) of title 31, United States Code. . The amendment made by this section shall apply to payments made after the date of the enactment of this Act.