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U.S. Senators Call for Profit Repatriation Holiday

11 June 2014

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Proposed Changes

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United States

On 10 June 2014, U.S. Senators Harry Reid and Rand Paul called for a profit repatriation holiday to provide funding for improvements to the U.S.'s transportation infrastructure. According to a Reid aide, the package would include a 9.5% reduced rate holiday. A compromise for Senator Paul, who wants to see a permanent 5% rate on repatriated profits. The holiday is based on Internal Revenue Code section 965, which allows an optional one-year 85% dividends received deduction for dividends paid by a controlled foreign company to a U.S. corporation. Additional details will be published once available.