H.R. 9176, the PAR Act, creates a tax exemption for foreign investors who trade digital assets through U.S. brokers or on their own accounts, treating such trading similarly to how the tax code currently handles securities and commodities trading. The exemption prevents foreign persons from being classified as engaged in a U.S. trade or business solely based on digital asset trading activity, which would otherwise trigger U.S. tax obligations. The provision takes effect for tax years beginning after December 31, 2025. The bill also clarifies that its digital asset tax definitions do not change how digital assets are regulated under securities or commodities laws and do not apply to tax periods before the law takes effect, preserving existing regulatory frameworks alongside the new tax rules.
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