The Trump administration predicts passage of the tax reform Bill by the end of 2017 after Republicans reach agreement on proposals
US federal tax reform (i.e., the Tax Cuts and Jobs Act) seems to be on the cusp of enactment. On 13 December 2017 the House and Senate reached agreement on their respective tax bills, reportedly settling on a reduced rate of corporation tax of 21 percent. Work will now take place on the final text of the unified Bill which will be voted on by the full House and Senate. Assuming it passes, it will then be signed into law by President Trump, whose administration is confident that the Bill will pass by the end of 2017 – although at the time of writing, some media commentators are reporting that this may be in doubt. We will be holding a webinar on the latest developments at lunchtime on Wednesday 20 December and an invitation will be sent to all Tax Matters Digest recipients.
For UK multinational entities (MNEs), there are some key impacts that are expected to result from the passage of the US tax reform Bill:
On this side of the Atlantic, finance ministers from France, Germany, Italy, Spain, and the UK have written to US Treasury Secretary Steven Mnuchin expressing concerns about some of the tax reform proposals. The letter highlighted European concerns that some of the international tax provisions could contravene the US’s double taxation treaties and risk a distortive effect on international trade.
As mentioned above, we will be holding the third in our series of webinars on this topic at lunchtime on Wednesday 20 December. You can listen to the second webinar in our US Tax Reform series, held on 5 December, here and view the slides here. The first webinar, held on 14 November, can be listened to here and the slides can be viewed here.
You can also keep up to date on the progress of US tax reform on KPMG in the US’s dedicated site. .
If you have any questions about US tax reform and what it could mean for your business, please get in touch with your usual KPMG contact or with one of the named contacts below.
For further information please contact: