Internal revenue service United States (IRS) released new tax rules for foreign banks, giving concessions in the payment of international taxes aimed at preventing the transfer of profits to other countries. In accordance with the new rules (which will come into force after its official publication), companies can only pay tax with the profits.
Steven Mnuchin: tax policy trump will attract hundreds of billion dollars
As stated in a document published on the official website of the IRS, the proposed rules guidance on tax base erosion payments of taxpayers with substantial gross revenue and reporting requirements on them. «The proposed regulations will affect corporations with significant gross income who make payments to foreign parties.»
Relief is temporary and the base tax erosion and protection from abuse (BEAT) will be in the US to make 5% this year alone. From next year to 2025, it will be 10% and then comes up to 12.5%. This measure is one of the components of the concept of the new tax system, which promotes Donald trump known as Trump Tax Law’s. As expected, the tax maneuvers will attract investors and help the U.S. economy. International companies, according to the authors of the reform, having the ability to withdraw part of the profits from the United States with less tax burden, should want to leave in the United States its production and not print it to countries with cheaper labor or less social stress. And it will keep jobs for Americans and will give impetus to the construction of new facilities.
«We want all Americans experienced the possibility of dynamic development created by the economic policies of President trump,» — said in a Fox Business about the objectives of tax changes Finance Minister Steven Mnuchin and shared expectations that this will attract hundreds of billions of dollars.
Arlene Fitzpatrick, head in the national division, Ernst & Young, told Bloomberg that «the rules will allow foreign companies to exclude so-called income effective relationships derived from doing business in the United States, American units in the calculation of tax. Back office and other services will also be excluded.» And David Noren, partner of the law firm McDermott Will & Emery added that «the Motion of the IRS is clearly the best reading of the Statute of the organization.»
