October 16 2020

US Treasury Reissues Boycott Countries List

Source: IBFD Tax Research Platform News

The US Treasury Department (Treasury) has reissued its list of the countries that require cooperation with, or participation in, an international boycott as a condition for doing business. The list was published in the Federal Register on 13 October 2020.

The countries listed are Iraq, Kuwait, Lebanon, Libya, Qatar, Saudi Arabia, Syria, the United Arab Emirates and the Republic of Yemen. The new list is unchanged from the list that was published in the Federal Register on 20 July 2020.

The Treasury is monitoring the situation of the United Arab Emirates which issued a decree repealing its boycott law.

The listed countries are identified pursuant to section 999 of the US Internal Revenue Code (IRC), which requires US taxpayers to file reports with the Treasury Department concerning operations in the boycotting countries. Such taxpayers incur adverse consequences under the IRC, including denial of US foreign tax credits (FTCs) for taxes paid to those countries and income inclusion under subpart F of the IRC in the case of US shareholders of controlled foreign corporations (CFCs) that conduct operations in those countries.