H.R. 9764: Hindering Oppressive Nations from Obtaining Revenue Act

This bill would change U.S. tax law so that U.S. taxpayers could not claim a foreign tax credit for certain taxes paid to the Russian Federation.

What that means in practice

Under current law, U.S. taxpayers may sometimes reduce their U.S. income tax by claiming a credit for income taxes paid to foreign countries. This bill would add Russia to the list of countries for which that credit is denied, but only during a specified period.

Timing

The new rule would start 30 days after the bill becomes law. It would stay in effect until the U.S. resumes normal tariff treatment for Russian products under a separate law, the Suspending Normal Trade Relations with Russia and Belarus Act.

Treaty rule

The bill says this change would apply even if it conflicts with a U.S. tax treaty. In other words, treaty provisions would not override this denial of the foreign tax credit.

Overall effect

In plain terms, the bill would make it harder for people or businesses with Russian tax obligations to use those taxes to offset their U.S. tax bill. It is aimed at preventing Russian tax revenues from indirectly reducing U.S. tax receipts through the foreign tax credit system.

Relevant Companies

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