2017 saw the enactment of the most comprehensive changes to the US tax code in more than 30 years and will require careful consideration by all taxpayers.
The cornerstone of US tax reform is a reduction in the headline rate of federal corporate income tax from 35% to 21%, beginning from 1 January 2018.
In this article, Sharon Burke looks at US tax reform in detail considering the changes to the corporate income tax code and the impact for US parented groups with Irish based business and Irish based business operating in the US.
Following both the US House of Representatives and the Senate passing different versions of proposed US tax reform, the “Tax Cuts and Jobs Act”, a conference committee containing members of both chambers of Congress was formed to reach agreement on a tax reform bill.
On 15 December 2017, the joint House-Senate conference committee unveiled its conference agreement on the Tax Cuts and Jobs Act. This reconciles differences between the versions of the tax reform bill passed by the House and passed by the Senate.
Having passed the House, the name of the Bill was amended by the Senate to An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018 (referred to below as the Act). Further to the Senate having passed the amended Bill, the House passed the Bill on 20 December 2017, and it was signed by President Trump and enacted on 22 December 2017. Tax reform was in place for 2018.
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