Congress and the White House have tentatively agreed to extend for two years a tax break for foreign subsidiaries of financial services companies.

President Clinton vetoed a tax-cut bill in September, but has agreed to a deal to renew several expiring provisions including the foreign-subsidiaries measure, House Ways and Means Chairman Bill Archer and Senate Finance Committee Chairman William V. Roth Jr. said late Tuesday.

For the past two years, banks, securities firms, and insurers have been able to postpone taxes on some income from international units until the earnings are repatriated. Under the deal, this tax deferment would continue through 2001 instead of expiring next month. Congress could approve the deal as early as Thursday. -- Dean Anason

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