Companies Demand Treasury Withdraws Foreign Tax Credit Regs (2)

A group of multinational companies has called on the U.S. Treasury Department to remove new regulations on foreign tax credits, arguing they make American companies less competitive.

The Alliance for Competitive Taxation, which represents corporations including The Coca-Cola Co, Exxon Mobil Corp, and Alphabet, Inc., argues in its letter that the regulations go beyond their original purpose.

That purpose, said the ACT, was to deny a U.S. foreign tax credit for novel extraterritorial taxes, such as digital services taxes (DST). However, the final regulations published in December 2021 go much further, and “will deny foreign tax credits ...