Sec. 505. Modifications of foreign tax credit rules applicable to dual capacity taxpayers
253 words·~1 min read·
/bill/113/s/277/is/section-505A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 901 of the Internal Revenue Code of 1986 is amended by redesignating subsection
(n)as subsection
(o)and by inserting after subsection
(m)the following new subsection: Notwithstanding any other provision of this chapter, any amount paid or accrued by a dual capacity taxpayer or any member of the worldwide affiliated group of which such dual capacity taxpayer is also a member to any foreign country or to any possession of the United States for any period shall not be considered a tax to the extent such amount exceeds the amount (determined in accordance with regulations) which would have been required to be paid if the taxpayer were not a dual capacity taxpayer. For purposes of this subsection, the term ‘dual capacity taxpayer’ means, with respect to any foreign country or possession of the United States, a person who— is subject to a levy of such country or possession, and receives (or will receive) directly or indirectly a specific economic benefit (as determined in accordance with regulations) from such country or possession. The Secretary may issue such regulations or other guidance as is necessary or appropriate to carry out the purposes of this subsection. . The amendments made by this section shall not apply to the extent contrary to any treaty obligation of the United States. The amendments made by this section shall apply to amounts that, if such amounts were an amount of tax paid or accrued, would be considered paid or accrued in taxable years beginning after December 31, 2012.