US tax
Foreign-owned banks to be hit by US tax rules
Major international banks operating in the US could be disproportionately hit by new tax rules that will penalise the way they have structured their global operations
Lenders warn that Senate “base erosion” tax plans being discussed by lawmakers will penalise foreign-owned banks that make interest payments within their corporate groups. They complain that the regime will ultimately impose a tax penalty on lenders in part because they are complying with regulatory obligations in the US.
In a letter seen by the Financial Times, the Institute of International Bankers, which represents the US units of foreign banks, issued lawmakers an “urgent” request to amend the provision, warning that in its current form it would force banks to reduce lending or restructure their US operations.
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