The U.S. Treasury released a list of countries on 10 June 2025 that may require participation in an international boycott. These countries include Iraq, Kuwait, Lebanon, Libya, Qatar, Saudi Arabia, Syria, and Yemen.
The US Treasury issued a notice on 10 June 2025 on countries requiring participation in an international boycott, which was published in the Federal Register.
The list includes Iraq, Kuwait, Lebanon, Libya, Qatar, Saudi Arabia, Syria, and Yemen.
The notice mentions that individuals or members of a controlled group involved with listed countries or their governments must file Form 5713 (International Boycott Report). The Form 5713 must be filed by anyone operating in a non-listed country that mandates participation in or cooperation with an international boycott to conduct business there.
The following US persons also must file Form 5713:
- A member of a controlled group, a member of which has operations;
- A US shareholder of a foreign corporation that has operations (but only if they own stock of that foreign corporation;
- A partner in a partnership that has operations;
- A person treated as the owner of a trust that has operations.
Tax benefits that may be lost
If one cooperates with or participates in an international boycott, they may lose a portion of the following:
- The foreign tax credit (section 908(a)).
- Deferral of taxation of earnings of a CFC (section 952(a)(3)).
- Deferral of taxation of IC-DISC income (section 995(b)(1)(F)(ii)).
- Exemption of foreign trade income of an FSC (section 927(e)(2), as in effect before its repeal).
- Exclusion of extraterritorial income from gross income (section 941(a)(5), as in effect before its repeal).
Earlier, on 1 October 2024, the US Treasury published the current list of countries that may necessitate participation in or cooperation with an international boycott.
