Europe really doesn’t like me “discriminatory” tax plans USA
In the near future in the US may begin to act a new tax system that will increase the burden on foreign companies operating in the country, as well as the us that have offices abroad. Against the new rules were made by the five European countries with some of the world’s largest economies – Germany, France, UK, Spain and Italy.
They warned the administration to trump that the tax plan could violate international trade rules. This writes CNN.
“It is important that the U.S. government, carrying out domestic tax policy, adhere to the international obligations which it signed”, – stated in the letter signed by Finance Ministers of five European countries.
The Ministers noted that the proposed changes to the tax code of the United States can provide American companies an advantage over foreign competitors.
In particular, located in the U.S. multinationals will have to pay 20% taxes on payments to their foreign affiliates. Legislative changes may also be possible to tax the income of foreign companies not having a permanent base in the United States.
One more of possible innovations – during the implementation of cross-border transfers in banks and financial companies will apply a 10 percent tax.
The Finance Ministers said they oppose another measure in the Senate bill, which could benefit American companies by subsidizing their exports. The greater the income will be the U.S. company from exporting, the greater portion of its income will be taxed at a tax rate of 12.5% instead of the General corporate rate of 20%.
The bill has been approved by the House of representatives and the U.S. Senate. It is expected that President Donald trump could put his signature to the document before Christmas on December 25. It is anticipated that trump will make statements on tax reform in the Treasury Department Wednesday, December 13.
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Letter to the editor
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