Forum. The administration Trump is close to achieve the greatest tax reform in american since the Kennedy administration. As in the 1960s, the United States are reshaping their tax system to ensure international leadership. But while the taxation Kennedy encouraged the conquest of foreign markets, the reform Trump calls for the centralization of investments in the United States. After the expansion comes the concentration.
The rate decrease, associated to the increase of the plate – both spectacular – and aims to benefit the american groups vis-à-vis their foreign competitors and to attract investments, especially in technology, in the United States. If the reform is not yet passed, it is likely that it will be by the end of the year. Companies and european decision-makers must prepare for
The drop rate is spectacular. The rate of corporate tax is 20 %, while we debate in France on the prospect of a rate to be 28 %. For some of the income of intellectual property, the effective rate will be the same quasi-equivalent to the rate of ireland, which is 12.5 %. The european debate on the aggressiveness of the rate irish is becoming the bang for the least old-fashioned.
Paradigm shift
Another aspect of the decline in rate is the change of paradigm in the u.s. tax code. It is moving from a logic of taxation, a global rule territorial equivalent to the one we know in France. Now, us companies will no longer be subject to tax only on their local incomes. The symbol is powerful to a policy that becomes insular. The revenue currently overseas that would be repatriated will benefit from a reduced taxation, between 10% and 15% according to the parliamentary debates, still ongoing, for which payment will be spread over 8 years.
The system Trump makes tax havens obsolete !
While up to now…
