Читать книгу International Taxation - Adnan Islam - Страница 59

Notice 2017-57 announced that the Treasury and the IRS intend to amend the regulations under Section 987 to defer the applicability date of the final regulations, as well as certain provisions of the temporary regulations, under Section 987 by one year. The final regulations under Section 987 were identified in Notice 2017-38 as significant tax regulations requiring additional review pursuant to Executive Order 13789.

On January 9, 2017, the Treasury Department and the IRS published Treasury Decision 9794, which contains final regulations relating to the determination of the taxable income or loss of a taxpayer with respect to a QBU subject to Section 987 (a Section 987 QBU); the timing, amount, character, and source of any Section 987 gain or loss; and other regulations (the final regulations). On that same date, Treasury Decision 9795 was published. The decision contains temporary regulations under Section 987, including the following: rules relating to the recognition and deferral of foreign currency gain or loss under Section 987 in connection with certain QBU terminations and certain other transactions; an annual deemed termination election for a Section 987 QBU; an elective method, available to taxpayers that make the annual deemed termination election, for translating all items of income or loss with respect to a Section 987 QBU at the yearly average exchange rate; rules regarding the treatment of Section 988 transactions of a Section 987 QBU; rules regarding QBUs with the U.S. dollar as their functional currency; rules regarding combinations and separations of Section 987 QBUs; rules regarding the translation of income used to pay creditable foreign income taxes; and rules regarding the allocation of assets and liabilities of aggregate partnerships for purposes of Section 987 (the temporary Section 987 regulations). Treasury Decision 9795 also contains temporary regulations under Section 988, requiring the deferral of certain Section 988 loss that arises with respect to related party loans.