The US Treasury will close a tax loophole for multinational companies that use foreign losses

The US Treasury Department is proposing new rules to prevent multinational companies from using foreign losses to avoid US taxes. This means companies will find it harder to claim the same loss twice, once in the US and once in a foreign country.

Multinational companies have long used complex accounting tricks to reduce their tax bills. One common method involves 'dual consolidated losses,' where a company claims a loss in two different countries. These new rules aim to close that specific loophole, making it harder for companies to shift profits and losses across borders to avoid paying taxes.