April 07,2022

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Wyden, Portman Release Bipartisan Bill to Disallow Foreign Tax Credits and Other Tax Benefits for Companies Operating in Russia

Washington, D.C.—Senate Finance Committee Chair Ron Wyden, D-Ore., and Senate Finance Committee Member Rob Portman, R-Ohio, today released a discussion draft of legislation to disallow Foreign Tax Credits for companies that pay taxes to the Russian government, and other tax benefits.

“We have bipartisan agreement on policies to ensure American taxpayers are not subsidizing the Russian war machine. Vladimir Putin continues to bomb civilians, and there are now credible reports and strong evidence of war crimes, including execution of civilians, are emerging from liberated cities,” said Wyden and Portman.

The senators continued, “If companies choose to keep doing business in Russia and paying taxes to Putin’s government in the face of these atrocities, they should forfeit their foreign tax credits and deductions for taxes paid to Russia in the United States. Russian oligarchs and companies supporting Putin also shouldn’t be getting tax benefits in the United States. These are simple propositions.

“The tax code already disallows lower tax rates and foreign tax credits for companies paying taxes to countries with rogue regimes. Our commonsense proposal simply adds Russia and Belarus to that list. We’re looking forward to working with our colleagues to move this legislation forward.” 

A summary of the legislation can be found here.

The discussion draft legislative text can be found here.

Comments on the discussion draft should be submitted to Jonathan Goldman (jonathan_goldman@finance.senate.gov ) and Anne Gordon (anne_gordon@portman.senate.gov ) no later than April 21st.