This webpage presents a collection of recent articles which address the impact of the Tax Cuts and Jobs Act on U.S. multinational businesses.
By: Amanda Iacone (Bloomberg BNA)
U.S. companies are expected to pay billions in federal taxes to bring back cash they've built up overseas over the last three decades. But investors might not know it by reading their financial statements. Analysts told Bloomberg Tax that the ambiguity starts with where in their annual or quarterly reports companies are reporting the repatriation tax.
By: Ben Leubsdorf and Richard Rubin (The Wall Street Journal)
Corporations taking advantage of new, lower tax rates reduced their payments to the federal government last month. The Treasury Department on Thursday said government receipts fell 7% in June compared with the same month a year earlier, including a 33% drop in gross corporate taxes.
By: Andrew Edgecliffe-Johnson (Financial Times)
Stock buyback announcements by US companies smashed records in the second quarter, feeding the debate over how boardrooms are spending their windfall from the Republican tax cuts President Donald Trump signed into law in December.
By: Mindy Herzfeld
The global intangible low-taxed income provision — new section 951A, combined with new section 250 — in the Tax Cuts and Jobs Act (P.L. 115-97) includes rules unlike any that have ever been part of the Internal Revenue Code. Tax advisers and reg writers have been wrestling with concepts that eliminate deferral on any foreign earnings over a fixed return on tangible assets, separate GILTI taxes into their own basket, allow a GILTI deduction at the parent level, and net controlled foreign corporations that have positive tested income with those that have negative tested income. Many of those concepts can be traced to international tax reform proposals that have been discussed for over a decade. Review and analysis of the earlier proposals could help inform both advisers and regulation writers.
By: Ben Eisen and Daniel Kruger (The Wall Street Journal)
U.S. companies are funneling extra money into their pension funds to take advantage of temporary tax savings, moves that are helping suppress yields on long-term Treasurys. S&P 500 companies are contributing to pension plans this year at a pace expected to nearly match 2017’s level, which at $63 billion was the most since 2003, according to Goldman Sachs Asset Management. Last year’s contributions were spurred in part by companies anticipating changes in the U.S. tax-code overhaul.
By: Allyson Versprille (Bloomberg BNA)
Multinationals like Coca-Cola Co. and private equity firms are concerned that a provision in the new tax law could end up changing the way foreign entities that were meant to be exempted are taxed—potentially putting them in the crosshairs of new U.S. international tax rules. The issue arises from a change in the law that will result in more foreign entities being treated as controlled foreign corporations (CFCs).
By: Alison Bennett, Kaustuv Basu, Terrence Dopp, Toluse Olorunnipa, Catherine Dodge, and Rita Devlin Marier (Bloomberg BNA)
House Ways and Means Committee Chairman Kevin Brady (R-Texas) says tax legislation this year will clarify international tax issues; and President Donald Trump says he wants to cut the corporate rate.
By: Chelsey Dulaney (The Wall Street Journal)
U.S. companies have brought home only a sliver of their more than $2 trillion in profits stashed overseas, a sign that this year’s corporate spending spree on things like buybacks and new equipment is only just beginning.
By: Richard Rubin (The Wall Street Journal)
Multinational companies are trying to beat a new tax called the BEAT. The BEAT is the Base Erosion and Anti-Abuse Tax, a complex minimum tax meant to prevent the world’s biggest corporations from shifting profits from the U.S. to other countries. Turned from idea into law last year as part of the tax-code revamp, the BEAT is now frustrating corporate executives and spurring fresh tax-avoidance strategies.
By: Tatyana Shumsky (The Wall Street Journal)
The era of U.S. companies hoarding cash offshore may be coming to an end as a result of the new U.S. tax law, a development that raises concerns about corporate credit risk for more indebted companies down the line, according to S&P Global Ratings.