Title: Per-Country Minimum Act
Policy area: Taxation

Summary:
Per-Country Minimum Act
This bill modifies the tax treatment of foreign source income of domestic corporations to: (1) increase taxes that apply to global intangible income by reducing the deduction that is allowed under current law, (2) eliminate a provision that allows companies to deduct a portion of the tangible assets of their controlled foreign corporations (CFCs) before the tax on foreign income applies, and (3) require net CFC tested income to be determined on a country-by-country basis rather than globally.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6015 Introduced in House (IH)]

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115th CONGRESS
  2d Session
                                H. R. 6015

   To amend the Internal Revenue Code of 1986 to increase the tax on 
                   certain global intangible income.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 6, 2018

Mr. DeFazio (for himself, Mr. Doggett, Ms. DeLauro, Ms. Norton, and Ms. 
 Schakowsky) introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to increase the tax on 
                   certain global intangible income.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Per-Country Minimum Act''.

SEC. 2. INCREASE IN TAX ON GLOBAL INTANGIBLE INCOME.

    (a) In General.--
            (1) Reduction in deduction for taxable years before 2026.--
        Section 250(a)(1)(B) of the Internal Revenue Code of 1986 is 
        amended by striking ``50 percent'' and inserting ``37.5 
        percent''.
            (2) Reduction in deduction for taxable years after 2025.--
        Section 250(a)(3)(B) of such Code is amended to read as 
        follows:
                    ``(B) `21.875 percent' for `37.5 percent' in 
                subparagraph (B).''.
    (b) Repeal of Tax-Free Deemed Return on Investments.--
            (1) In general.--Section 951A(a) of such Code is amended by 
        striking ``global intangible low-taxed income'' and inserting 
        ``net CFC tested income''.
            (2) Conforming amendments.--
                    (A) Section 951A of such Code is amended by 
                striking subsections (b) and (d).
                    (B) Section 951A(e)(1) of such Code is amended by 
                striking ``subsections (b), (c)(1)(A), and'' and 
                inserting ``subsections (c)(1)(A) and''.
                    (C) Section 951A(f) of such Code is amended to read 
                as follows:
    ``(f) Treatment as Subpart F Income for Certain Purposes.--
            ``(1) In general.--Except as provided in paragraph (2), any 
        net CFC tested income included in gross income under subsection 
        (a) shall be treated in the same manner as an amount included 
        under section 951(a)(1)(A) for purposes of applying sections 
        168(h)(2)(B), 535(b)(10), 851(b), 904(h)(1), 959, 961, 962, 
        993(a)(1)(E), 996(f)(1), 1248(b)(1), 1248(d)(1), 6501(e)(1)(C), 
        6654(d)(2)(D), and 6655(e)(4).
            ``(2) Exception.--The Secretary shall provide rules for the 
        application of paragraph (1) to other provisions of this title 
        in any case in which the determination of subpart F income is 
        required to be made at the level of the controlled foreign 
        corporation.''.
                    (D) Section 960(d)(2)(A) of such Code is amended by 
                striking ``global intangible low-taxed income (as 
                defined in section 951A(b))'' and inserting ``net CFC 
                tested income (as defined in section 951A(c))''.
    (c) Determination of Net CFC Tested Income on Country-by-Country 
Basis.--Section 951A of such Code is amended by adding at the end the 
following:
    ``(g) Determination Made on Country-by-Country Basis.--
            ``(1) In general.--This section shall be applied with 
        respect to a United States shareholder of the controlled 
        foreign corporation separately with respect to each foreign 
        country in which the controlled foreign corporation conducts 
        any trade or business.
            ``(2) Special rules.--
                    ``(A) In general.--For purposes of making country-
                by-country determinations under this section and 
                sections 904 and 960 with respect to net CFC tested 
                income for a taxable year pursuant to paragraph (1)--
                            ``(i) taxes paid or accrued to a foreign 
                        country by the controlled foreign corporation 
                        shall be assigned to that country, and
                            ``(ii) earnings to which such taxes relate 
                        shall be treated as income assigned to the 
                        country to which those tax payments are made.
                    ``(B) Earnings assigned to two or more countries.--
                If the same earnings are assigned to two or more 
                countries under subparagraph (A), for purposes of 
                paragraph (1) such earnings and the taxes related 
                thereto shall be treated as assigned to the country 
                with the highest statutory corporate tax rate.
            ``(3) Earnings not subject to tax.--If earnings are not 
        subject to tax by any country, then with respect to those 
        earnings paragraph (1) shall not apply.
            ``(4) Regulations.--The Secretary shall prescribe such 
        regulations as may be necessary or appropriate to carry out 
        this subsection, including the time period in which foreign 
        earnings and the associated foreign taxes are assigned to a 
        country.''.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to taxable years of controlled foreign corporations 
beginning after December 31, 2018, and to taxable years of United 
States shareholders in which or with which such taxable years of 
foreign corporations end.
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