PwC Calls for Clearer Tax Rules for Foreign Government Income

Accounting giant PwC is calling for clearer rules for the tax treatment of foreign government-sourced investments and guidance on when a foreign government’s investment creates effective control issues.

The Treasury Department is working on finalizing rules governing when foreign government income is exempt from taxation.

Current rules on the classification of foreign lending is causing confusion in the market, particularly with the rise of private credit in recent years, PwC told the department Thursday.

Treasury issued proposed rules under Section 892 in December, revamping when foreign governments’ income from US investments is exempt from US tax.

The ...