How does the current US system of international taxation work? Q.How does the current US system of international taxation work? A.All countries tax income earned by multinational corporations within their borders. The United States also imposes a minimum tax on the income US-based multinationals earn in low-tax foreign countries, with a credit for 80 percent of foreign income taxes they’ve paid. Most other countries exempt most foreign-source income of their multinationals. Read more about How does the current US system of international taxation work?
What is the TCJA base erosion and anti-abuse tax and how does it work? Q.What is the TCJA base erosion and anti-abuse tax and how does it work? A.The BEAT, a new tax under the Tax Cuts and Jobs Act, limits the ability of multinational corporations to shift profits from the United States by making deductible payments to their affiliates in low-tax countries. Read more about What is the TCJA base erosion and anti-abuse tax and how does it work?
What is a tax shelter? Q.What is a tax shelter? A.Tax shelters are ways individuals and corporations reduce their tax liability. Shelters range from employer-sponsored 401(k) programs to overseas bank accounts. Read more about What is a tax shelter?