What will President Trump's tax policy mean for transfer pricing?
TAX BLOG |
The new Trump administration is garnering attention worldwide. Ken Almand, Head of Transfer Pricing at RSM UK, recently explored the possibilities for new U.S. corporate tax rates under President Trump’s administration and whether multinationals will rush to review their tax strategies and transfer pricing in the United States.
President Trump’s proposals include:
- Cutting U.S. corporate tax rates from 35 to 15 percent
- Allowing a one-time repatriation of profits currently held offshore at a reduced rate of 10 percent
- Imposing import duties on foreign manufactured goods
If any of these changes do in fact happen, there will be some significant work to be done to help corporations with U.S. operations comply with the new rules.
Ken also describes the lackluster U.S. support of the base erosion profit shifting (BEPS) Action Plan which may make it more challenging to see global implementation of the proposed BEPS changes.
Read the full article on our UK site.