The US House of Representatives ways and means committee has released its tax reform Bill, the ‘Tax Cuts and Jobs Act’. Companies would see the US federal tax rate drop to 20% from 2018, with an effective 10% levy on non-US profits. A blanket 30% of tax-EBITDA interest restriction would be introduced. Losses could only be set against 90% of corporate profits. Unremitted profits would be taxed at 12% for cash and 5% for other assets, with the ability to spread payments over eight years. Personal tax rates would be simplified and cut. The Senate is expected to introduce its own Bill next week. Both Houses must agree on proposals to be put to the full Houses for a vote and it is not certain at this stage that any package will in fact be agreed. The committee has published a description of the Bill at http://bit.ly/2yGKTWk.
The US House of Representatives ways and means committee has released its tax reform Bill, the ‘Tax Cuts and Jobs Act’. Companies would see the US federal tax rate drop to 20% from 2018, with an effective 10% levy on non-US profits. A blanket 30% of tax-EBITDA interest restriction would be introduced. Losses could only be set against 90% of corporate profits. Unremitted profits would be taxed at 12% for cash and 5% for other assets, with the ability to spread payments over eight years. Personal tax rates would be simplified and cut. The Senate is expected to introduce its own Bill next week. Both Houses must agree on proposals to be put to the full Houses for a vote and it is not certain at this stage that any package will in fact be agreed. The committee has published a description of the Bill at http://bit.ly/2yGKTWk.
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