,i  #aad? ,,congress  #b;d ,session  ,h4
 ,r4 #eede  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,june #ba1 #bjaf,mr4  
,b\/any 7= himself1 ,mr4 ,roskam1 ,mr4  
,tib]i1 ,mr4 ,bu*anan1 ,mr4 ,sam        
,johnson ( ,texas1 ,mr4 ,rei*]t1 ,mr4   
,"y ( ,indiana1 ,mr4 ,nunes1 & ,mrs4    
,black7 introduc$ ! foll[+ bill2 :i* 0  
ref]r$ to ! ,committee on ,ways & ,means
  ,a ,,bill  ,to am5d ! ,int]nal ,rev5ue
 ,code ( #aihf to modify ! application (
 c]ta9 rules ) respect to c]ta9 =eign   
c\ntries4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,prev5t+ ,inve/m5t 9       
,t]rori/ ,regimes ,act4  #b4            
,modification ( application ( c]ta9     
rules ) respect to c]ta9 =eign c\ntries 
7a7 ,limitation on waiv] au?ority       
,section #ija7;j77#e77;,a7 ( ! ,int]nal 
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 7o!r ?an a c\ntry describ$ 9 p>agraph  
7#b77;,a77iv77 aft] a c\ntry4  7b7      
,d5ial ( =eign tax cr$it ) respect to   
income d]iv$ f c]ta9 =eign c\ntries )\t 
reg>d to :i* c\ntry tax is paid         

,subp>agraph 7,a7 ( section #ija7;j77#a7
 ( su* ,code is am5d$ by /rik+ to any   
c\ntry & all t foll[s & ins]t+ to-- 7i7 
any =eign c\ntry to :i* ?is subsection  
applies if su* taxes are ) respect to   
income attributable to a p]iod dur+ :i* 
?is subsection applies to su* =eign     
c\ntry1 &  7ii7 any =eign c\ntry 7)\t   
reg>d to :e!r ?is subsection applies to 
su* =eign c\ntry7 if su* taxes are )    
respect to income d]iv$ f any =eign     
c\ntry to :i* ?is subsection applies    
dur+ a p]iod = :i* ?is subsection s     
applies 7det]m9$ "u rules simil> to !   
rules ( section #ieb7;d771 &  4  7c7    
,d5ial ( d$uction = taxes = :i* =eign   
tax cr$it is d5i$1 etc ,section         
#ija7;j77#c7 ( su* ,code is am5d$ to    
read z foll[s3  7#c7 ,d5ial ( d$uction =
 taxes = :i* =eign tax cr$it is d5i$1   
etc  7,a7 ,9 g5]al ,no d$uction %all be 
all[$ "u ?is *apt] = any tax = :i* cr$it
 is n all[able "u ?is section by reason 
( p>agraph 7#a77;,a74  7,b7 ,d5ial (    
d$uction p>ity ,solely = purposes (     

section #gh1 ! taxes deem$ to be paid "u
 section #ijb7;a7 & #ifj7;a77#a7 %all be
 det]m9$ )\t reg>d to ?is subsection4  4
  7d7 ,application ( d5ial ( d$uction = 
taxes paid by controll$ =eign           
corporations  7#a7 ,det]m9ation ( subp>t
 ,f income ,section #ieb7;a7 ( su* ,code
 is am5d$ by /rik+ 7includ+ taxes7 9 !  
la/ s5t5ce & ins]t+ 7includ+ taxes o!r  
?an taxes = :i* cr$it is n all[$ "u     
section #ija by reason ( section        
#ija7;j77#a77;,a774  7#b7 ,det]m9ation (
 e>n+s & pr(its ,section #ifd7;a7 ( su* 
,code is am5d$ by ins]t+ 1 or any taxes 
= :i* cr$it is n all[$ "u section #ija  
by reason ( section #ija7;j77#a77;,a71  
aft] o!r paym5t 7)9 ! mean+ ( section   
#afb7;c774  7e7 ,cl>ification reg>d+    
c\ntry f :i* income is d]iv$ ,section   
#ieb7;d7 ( su* ,code is am5d$ by /rik+  
,! ,secret>y & ins]t+ ! foll[+3  7#a7 ,9
 g5]al ,= purposes ( subsection 7a77#e71
 income %all be treat$ z d]iv$ f a =eign
 c\ntry if su* income is d]iv$ 9        
connection )--  7,a7 prop]ty :i* is     

sold-- 7i7 = use1 consumption1 or       
disposition 9 su* =eign c\ntry1 or  7ii7
 to any =eign p]son :i* is creat$1      
organiz$1 or controll$ 9 su* =eign      
c\ntry or to a citiz5 or resid5t ( su*  
=eign c\ntry1 or  7,b7 s]vices provid$ )
 respect to p]sons or prop]ty locat$ 9  
su* =eign c\ntry or ) respect to p]sons 
describ$ 9 subp>agraph 7,a77ii74  7#b7  
,special rules ,= purposes ( ?is        
subsection-- 7,a7 ,ultimate disposition 
,prop]ty %all n fail to be treat$ z     
describ$ 9 p>agraph 7#a77;,a7 if !      
controll$ =eign corporation or any      
relat$ p]son knew1 or _h reason to "k1 t
 su* prop]ty w\ld be ultimately sold--  
7i7 = use1 consumption1 or disposition 9
 su* =eign c\ntry1 or  7ii7 to any p]son
 describ$ 9 p>agraph 7#a77;,a77ii74     
7,b7 ,sales to relat$ p>ties ,if prop]ty
 is sold to a relat$ p]son1 su* sale    
%all n fail to be treat$ z describ$ 9   
p>agraph 7#a77;,a7 unless--  7i7 su*    
prop]ty is ultimately sold-- 7,i7 = use1
 consumption or disposition outside su* 

=eign c\ntry1 or  7,,ii7 to a p]son n   
describ$ 9 p>agraph 7#a77;,a77ii71 or   
7ii7 su* prop]ty is resold to an        
unrelat$ p]son n describ$ 9 p>agraph    
7#a77;,a77ii7 & nei!r ! controll$ =eign 
corporation nor any relat$ p]son knew or
 _h reason to "k t su* prop]ty w\ld be  
ultimately sold 9 a sale describ$ 9     
p>agraph 7#a77;,a74  7,c7 ,application  
to s]vices ,rules simil> to ! rules (   
subp>agraphs 7,a7 & 7,b7 %all apply )   
respect to s]vices describ$ 9 p>agraph  
7#a77;,b74  7,d7 ,relat$ p]son ,! t]m   
relat$ p]son has ! mean+ giv5 su* t]m by
 section #ied7;d77#c74  7#c7            
,regulations ,! ,secret>y  4  7f7 ,d\bl+
 ( rates ( tax ) respect to c]ta9 =eign 
c\ntries  7#a7 ,d\bl+ ( rates ( tax on  
citiz5s & corporations ( c]ta9 =eign    
c\ntries ,section #hia ( su* ,code is   
am5d$-- 7,a7 by /rik+ ,:5ev] ! ,presid5t
 & ins]t+ ! foll[+3  7a7 ,d\bl+ ( rates 
( tax on citiz5s & corporations ( c]ta9 
=eign c\ntries  7#a7 ,presid5tial       
proclamation ,:5ev] ! ,presid5t  1 &    

7,b7 by add+ at ! end ! foll[+ new      
p>agraph3  7#b7 ,/atutory application ,9
 ! case ( any =eign c\ntry to :i*       
section #ija7;j7 applies = any p]iod1   
p>agraph 7#a7 %all apply ) respect to   
su* c\ntry 9 ! same mann] z if !        
,presid5t _h made a proclamation        
describ$ 9 ! fir/ s5t5ce ( p>agraph 7#a7
 ) respect to su* c\ntry at ! beg9n+ (  
su* p]iod & a proclamation describ$ 9 ! 
la/ s5t5ce ( p>agraph 7#a7 ) respect to 
su* c\ntry at ! end ( su* p]iod4  4     
7#b7 ,d\bl+ ( rates ( tax on income     
d]iv$ f c]ta9 =eign c\ntries ,section   
#hia ( su* ,code1 z am5d$ by p>agraph   
7#a71 is am5d$ by add+ at ! end ! foll[+
 new subsection3  7b7 ,d\bl+ ( rates (  
tax on income d]iv$ f c]ta9 =eign       
c\ntries  7#a7 ,9 g5]al ,9 ! case ( any 
=eign c\ntry to :i* section #ija7;j7    
applies = any p]iod1 ! rates ( tax      
impos$ by sections #a1 #aa1 #hja1 #hca1 
#heb1 #hga1 & #hha ) respect to any     
taxpay] %all be d\bl$ 9 ! case ( income 
d]iv$ f su* =eign c\ntry dur+ su* p]iod 

7det]m9$ "u rules simil> to ! rules (   
section #ieb7;d774 ,9 any case 9 :i* !  
mann] 9 :i* income is /ack$ w\ld *ange !
 rate ( tax :i* is treat$ z apply+ to   
income describ$ 9 ! prec$+ s5t5ce1 su*  
income %all be /ack$ 9 ! mann] :i*      
results 9 ! highe/ rate ( tax apply+ to 
! income s describ$4  7#b7 ,coord9ation 
) d\bl+ ( rates ( tax on citiz5s &      
corporations ( c]ta9 =eign c\ntries     
,p>agraph 7#a7 %all n apply to any      
taxpay] = any p]iod = :i* subsection 7a7
 applies to su* taxpay]4  4  7#c7       
,con=m+ am5dm5ts  7,a7 ,! head+ (       
section #hia ( su* ,code is am5d$ by    
/rik+ on citiz5s & corporations ( &     
ins]t+ ) respect to4  7,b7 ,! item      
relat+ to section #hia 9 ! table (      
sections = subp>t ,d ( "p ,,ii (        
sub*apt] ,n ( *apt] #a ( su* ,code is   
am5d$ to read z foll[s3  ,sec4 #hia4    
,d\bl+ ( rates ( tax ) respect to c]ta9 
=eign c\ntries4  4  7g7 ,prohibition on 
agreem5ts ,to delegate c]ta9 report+ to 
c]ta9 =eign c\ntries ,section #adgd7;f7 

( su* ,code is am5d$-- 7#a7 by /rik+ ,! 
,secret>y & ins]t+ ! foll[+3  7#a7 ,9   
g5]al ,! ,secret>y  1 &  7#b7 by add+ at
 ! end ! foll[+ new p>agraph3  7#b7     
,prohibition on int]gov]nm5tal agreem5ts
 ) c]ta9 =eign c\ntries ,! ,secret>y may
 n ent] into any int]gov]nm5tal agreem5t
 to c>ry out section #adga7;b7 ) any    
c\ntry to :i* section #ija7;j7 applies4 
4  7h7 ,effective date  7#a7 ,9 g5]al   
,except z o!rwise provid$ 9 ?is         
subsection1 ! am5dm5ts made by          
subsections 7a71 7b71 & 7c7 %all apply  
to taxes paid or incurr$ 9 taxable ye>s 
end+ aft] ! date ( ! introduction ( ?is 
,act4  7#b7 ,am5dm5ts relat$ to         
controll$ =eign corporations ,! am5dm5ts
 made by-- 7,a7 subsections 7a71 7b71 & 
7c7 to ! ext5t su* am5dm5ts relate to   
section #ieb7;a77#e7 ( ! ,int]nal       
,rev5ue ,code ( #aihf or to taxes deem$ 
to h be5 paid "u section #ijb or #ifj ( 
su* ,code1 &  7,b7 subsections 7d7 &    
7e71  %all apply to taxable ye>s ( =eign
 corporations end+ aft] ! date ( !      

introduction ( ?is ,act & to taxable    
ye>s ( ,unit$ ,/ates %>ehold]s ) or )9  
:i* su* taxable ye>s ( =eign            
corporations end4  7#c7 ,am5dm5ts relat$
 to d\bl+ ( tax on citiz5s &            
corporations ( c]ta9 =eign c\ntries ,!  
am5dm5ts made by subsection 7g7 %all    
apply to taxable ye>s end+ aft] ! date (
 ! introduction ( ?is ,act 7)\t reg>d to
 :e!r ! p]iod describ$ 9 subsection     
7a77#b7 or 7b77#a7 ( section #hia ( !   
,int]nal ,rev5ue ,code ( #aihf1 z add$  
by subsection 7f71 beg9s be=e su* date74
  7#d7 ,am5dm5ts relat$ to prohibition  
on agreem5ts to delegate c]ta9 report+  
to c]ta9 =eign c\ntries ,! am5dm5ts made
 by subsection 7g7 %all take effect on !
 date ( ! enactm5t ( ?is ,act4