What is the Book Minimum Tax on corporations? Q.What is the Book Minimum Tax on corporations? A.The 2022 Inflation Reduction Act (IRA) introduced a new corporate minimum tax on book income that became effective January 1, 2023. Read more about What is the Book Minimum Tax on corporations?
How would formulary apportionment work? Q.How would formulary apportionment work? A.Under the current global system, multinational firms determine their profits separately in each tax jurisdiction in which they operate. An alternative system would allocate a firm’s worldwide income across countries using a formula based on some combination of its sales, assets, and payroll in each jurisdiction. Read more about How would formulary apportionment work?
How do US corporate income tax rates and revenues compare with other countries’? Q.How do US corporate income tax rates and revenues compare with other countries’? A.The US corporate income tax rate is now lower than the top rate in all other leading economies except for the United Kingdom. Corporate income tax revenues in the United States as a share of gross domestic product have been lower than the average in other leading economies, even before the 2017 reduction in the US corporate tax rate. Read more about How do US corporate income tax rates and revenues compare with other countries’?