# 2025-00186: Base Erosion and Anti-Abuse Tax Rules for Qualified Derivative Payments on Securities Lending Transactions

2025-00186, Base Erosion and Anti-Abuse Tax Rules for Qualified Derivative Payments on Securities Lending Transactions, is a Federal Register proposed rule from an unnamed agency published 2025-01-14, effective 2025-01-10 (as of 2026-06-11).

- Canonical: https://policyrisk.com/federal-register/2025-00186
- As of: 2026-06-11
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Document number: 2025-00186
- Title: Base Erosion and Anti-Abuse Tax Rules for Qualified Derivative Payments on Securities Lending Transactions
- Type: Proposed Rule
- Agencies: unknown
- Citation: unknown
- Published: 2025-01-14
- Effective: 2025-01-10
- Comments close: not stated
- Significant: no
- Touches household money: no
- Regulation identifier numbers: none
- Last updated: 2026-06-11

## Summary

Big companies that lend securities and pay foreign related parties will see new rules on how certain payments are counted and reported for tax purposes. These changes aim to stop companies from shrinking their U.S. tax bills unfairly. Comments on the proposed rules are open until April 14, 2025, so affected companies should pay attention and get ready!

## Abstract

This document contains proposed regulations regarding the base erosion and anti-abuse tax imposed on certain large corporate taxpayers with respect to certain payments made to foreign related parties. The proposed regulations relate to how qualified derivative payments with respect to securities lending transactions are determined and reported. The proposed regulations would affect corporations with substantial gross receipts that make payments to foreign related parties.

## Effects PRIA read

- Mark-to-Market Gains/Losses Excluded from QDPs: benefit, high. If your corporation engages in intercompany securities lending, mark-to-market gains and losses on the securities leg of those transactions are not treated as qualified derivative payments (QDPs) and are not required to be included in QDP reporting or netted with QDPs. The rule applies to securitie…
- Substitute Payments Still Reportable QDPs: cost, medium. Substitute payments and other payments made to foreign related parties under a securities lending transaction (other than cash-collateral interest) remain qualified derivative payments and must be reported as QDPs (for example, on Form 8991). Those amounts must be taken into account consistently wh…
- Alternative Allocation When Recipient Unknown: benefit, medium. If a taxpayer cannot identify which substitute payments or other payments went to foreign related parties, the proposed rule lets the taxpayer use an alternative method that treats substitute payments as paid first to foreign related parties (but not more than the total received by foreign related…
- Key Dates: 2025 Change and 2027 Reporting Start: mixed, medium. The proposed securities-lending QDP rules (mark-to-market exclusion and allocation rules) are proposed to apply to taxable years beginning on or after January 10, 2025. The QDP reporting rule in Sec. 1.6038A-2(b)(7)(ix) would apply to payments made in taxable years beginning on or after January 1,…
- Rule Targets Large Corporations (>$500M): benefit, low. These proposed regulations apply to corporations that generally have average annual gross receipts of at least $500 million and that make payments to foreign related parties. The IRS certified that the proposed regulations will not have a significant economic impact on a substantial number of small…

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## Sources
- [2025-00186 on federalregister.gov](https://www.federalregister.gov/documents/2025/01/14/2025-00186/base-erosion-and-anti-abuse-tax-rules-for-qualified-derivative-payments-on-securities-lending)
- [2025-00186 as published (PDF)](https://www.govinfo.gov/content/pkg/FR-2025-01-14/pdf/2025-00186.pdf)

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Source: PRIA, https://policyrisk.com/federal-register/2025-00186 (as of 2026-06-11).