IRS, Treasury Propose Dual Consolidated Loss Regulations (2)

The IRS on Tuesday issued proposed regulations dictating how rules preventing US companies from using their losses twice will interact with the 15% global minimum tax.

The proposed regulations (REG-105128-23,RIN: 1545-BQ72) state an income tax can include “a tax that is intended to ensure a minimum level of taxation.” Therefore, a “foreign use” of a US multinational company’s loss may occur when used to calculate global minimum tax liability.

The existing dual consolidated loss rules prevent US multinational companies from “double dipping,” or using losses incurred somewhere in their multinational structure in the foreign jurisdiction where they operate ...