President Joseph R. Biden issued an Executive Order restricting certain U.S. investments in "covered national security technologies and products" in the People’s Republic of China, Hong Kong and Macau.
News & Insights
The Committee on Foreign Investment in the United States extended by one year the effective date for one of the criteria under the definitions of "Excepted Foreign State" and "Excepted Real Estate Foreign State."
The U.S. Departments of State, Treasury, Commerce and Homeland Security advised U.S. companies on the increasing risks associated with operations in the Hong Kong Special Administrative Region of the People's Republic of China.
The Treasury Department proposed regulations to implement the Foreign Investment Risk Review Modernization Act and broaden the authority of the Committee on Foreign Investment in the United States.
The U.S. Treasury Department and the IRS proposed regulations that affect certain U.S. corporations that own, or are treated as owning, stock in foreign corporations. The proposed regulations would limit the circumstances under which a "deemed repatriation" of the earnings of a controlled foreign corporation (a "CFC") under Internal Revenue Code Section 956 ("IRC Section 965") would be taxable to a corporate 10-percent U.S. shareholder. Under IRC Section 956, a CFC's previously untaxed earnings may be taxable to a 10-percent U.S. shareholder if: (i) the CFC guarantees the shareholder's debt,