Treasury provides list of countries that require cooperation with an international boycott 

August 17: A Treasury Department list of countries (PDF), publication in today’s edition of the Federal Register, lists those countries that require (or may require) participation in, or cooperation with, an international boycott (within the meaning of section 999(b)(3)).

Section 999(a)(3) requires the Treasury Secretary to maintain and publish at least on a quarterly basis a list of countries that require (or may require) participation with an international boycott. Today’s list of countries provided under the U.S. international boycott rules:


  • Iraq*
  • Kuwait
  • Lebanon
  • Libya
  • Qatar
  • Saudi Arabia
  • Syria
  • United Arab Emirates
  • Yemen

*Iraq is new to this list; all other countries have appeared on prior years’ lists.

Background

U.S. taxpayers that derive income in connection with participation in or cooperation with an international boycott are subject to special tax rules, including restrictions on their foreign tax credits. Section 999(a)(3) requires the Secretary of the Treasury to maintain and publish a list of countries that require (or that may require) participation in or cooperation with an international boycott not sanctioned by the United States. Notwithstanding a country's inclusion on this list, a U.S. company with operations in that country generally is not subject to the special tax rules if it can show that its operations in that country are not connected to participation in or cooperation with an international boycott.


For more information, contact:

Rick Speizman, National Partner-In-Charge, KPMG’s Exempt Organizations Tax Practice (ExoTax)

+1 (202) 533-3084





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