Foreign Earnings Reinvestment Act Introduced in U.S. Congress

On 5 February 2015, it was announced that Senator John McCain and Congressman Trent Franks introduced the Foreign Earnings Reinvestment Act in the U.S. Senate and House of Representatives.

The legislation provides for a temporary reduced effective tax rate of 8.75% on accumulated foreign earnings received by a U.S. corporation as dividends from a controlled foreign corporation. A further reduced effective rate of 5.25% may apply with the condition that U.S. corporation's annual payroll incr…