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WASHINGTON, Oct. 20 (UPI) -- The U.S. Treasury Wednesday removed Iraq from its list of countries subject to special foreign tax credit and other restrictions.
U.S. tax rules generally allow taxpayers a credit against U.S. income tax for taxes paid to a foreign country. Special rules generally deny foreign tax credits and impose other restrictions if income is attributable to countries with which the United States does not conduct diplomatic relations or which have been identified as sponsors of international terrorism.
The latest decision by the U.S. government is another step in normalizing relations with Iraq.
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