The US plans to eliminate tax exemptions for sovereign wealth fund investments

PANews January 16 News, according to the Financial Times of the UK, the Internal Revenue Service (IRS) has proposed amendments to Section 892 of the tax code, aiming to reclassify certain direct investment activities of sovereign wealth funds (SWFs) and public pension funds as “business activities” for taxation purposes. The new regulation may cover forms such as direct loans, debt restructuring, joint investments, and others, potentially affecting previously completed investment projects. The proposal is believed to possibly force SWFs to adopt more passive investment approaches, with the comment period ending on February 13.

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