Investment Competitiveness Act of 1991

Summary

Investment Competitiveness Act of 1991 - Amends the Internal Revenue Code to allow regulated investment companies (RICs) to distribute to shareholders: (1) taxable-interest dividends to be treated by shareholders as interest; (2) qualifying-interest dividends which are exempt from withholding taxes imposed on nonresident aliens and foreign corporations; and (3) short-term capital gains dividends to be treated by shareholders as includable in gross income (and by foreign shareholders as short-term capital gains). Requires notices of such dividends to be mailed to shareholders not later than 60 days after the close of a RIC's taxable year. Permits the establishment of international regulated investment companies (IRICs) which are domestic corporations which: (1) are registered under the Investment Company Act of 1940; (2) hold only permitted assets; (3) permit their stock to be owned only by qualified foreign persons; and (4) elect to be treated as IRICs. Describes permitted assets as: (1) stock of a single registered investment company or a single regulated investment company; (2) deposits and debt securities with financial institutions with maturities of not more than 30 days that are reasonable necessary for the company to conduct its normal business affairs; and (3) certain other assets which are incidental to the conduct of normal affairs. Allows the Secretary of the Treasury to treat as an IRIC a domestic corporation that substantially, but not completely, satisfies the criteria for such status, if such failure to satisfy the criteria is or was de minimis, inadvertent, or beyond the control of the corporation. Provides for taxing an IRIC at the rate of tax on nonresident aliens (30 percent). Provides for taxing an IRIC at half such rate if the IRIC elects to market its shares only to residents of countries with which the United States has a tax treaty.

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2 official files

• Introduced in Senate (text)

  Introduced in Senate · EN

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• Introduced in Senate

  summary · EN · 24 September 1991

  Open at official source

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