Nov 21, 2025 US International Tax Developments Report
TL/DR –
The US Congress is examining potential responses to the expiration of enhanced Affordable Care Act (ACA) premium tax credits at the end of 2025, with a bipartisan approach possibly bringing in other health, trade or tax issues. Republican Senate Majority Leader, John Thune, pledged to hold a vote on extension of ACA credits in early December, following IRS guidelines issued on the IRC Section 4501 excise tax on repurchasing corporate stock. The US also signed several international tax and trade frameworks, including with Switzerland and Liechtenstein, lowering tariffs to no higher than 15%, while five of the six agreements pledged against imposing digital service taxes on US companies.
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Latest Update on US International Tax Developments – 21 November 2025
21 November 2025
Republicans in Congress are contemplating strategies to address the forthcoming expiry of elevated Affordable Care Act (ACA) premium tax credits. Potential bipartisan solutions on the ACA credits could impact potential legislation on health, taxes, and trade. Possible year-end tax proposals could include legislation about cryptocurrency tax, US-Taiwan tax relief, and expiring provisions.
It is important to remember that Senate Majority Leader John Thune (R-SD) has pledged to Democrats to hold a vote on the extension of ACA credits no later than the second week of December. This promise was made in exchange for their support for the passing of the continuing resolution that re-opened the federal government.
IRS Final Regulations on Corporate Stock Repurchase
On 21 November, the IRS issued final regulations (TD 10037) on the IRC Section 4501 excise tax which applies to the repurchase of corporate stock. The controversial “funding rule” was withdrawn in the final regulations, which stipulated that repurchases of stock by foreign corporations were subject to excise tax if those purchases were “funded” by their domestic subsidiaries.
Active Work on “One Big Beautiful Bill Act” (OBBBA)
Kenneth Kies, the Treasury Assistant Secretary for Tax Policy and acting IRS Chief Counsel, has reportedly stated that active work is being done on international tax guidance for the “One Big Beautiful Bill Act” (OBBBA). Guidance on the one-month deferral election in IRC Section 898(c)(2) is expected to be released before December.
Draft Instructions for Digital Asset Transactions
The IRS unveiled draft instructions for filing Form 1099-DA, “Digital Asset Proceeds From Broker Transactions,” on 17 November. The instructions apply to transactions completed post-2025.
Trade Developments
President Trump signed an Executive Order (EO) titled Modifying the Scope of the Reciprocal Tariff with Respect to Certain Agricultural Products on 14 November. This EO specified that certain agricultural products would not be subject to the tariffs imposed under Executive Order 14257.
In related news, trade frameworks were announced with Switzerland and Liechtenstein on the same day. As per the White House Fact Sheet, the current country-specific tariff rate of 39% will be significantly reduced.
OECD Model Tax Treaty Update
The OECD released a note updating the OECD Model Tax Treaty on the 19th of November. The updates include clarifications on when cross-border remote working may constitute a taxable presence for business and a new alternative provision on how income from natural resource extraction activities should be taxed.
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