White House announces tax plan
On the 26th of April 2017 the Trump administration announced its tax plan. They consider it to be the largest corporate tax cut in history.
Regarding businesses, the following is proposed:
- Reducing the corporate rate to 15 percent
- Making small businesses (presumably pass-through entities and sole proprietorships) eligible for the 15 percent rate
- Repatriating foreign earnings at a one-time rate; negotiations are ongoing with Congress over what that rate would be, and no specific rate was discussed in the announcement
- Changing the U.S. tax system from a worldwide system to a territorial system
A complete overview of the proposed changes and their consequences has been provided by Baker Tilly US. Please keep a close eye on the provisions that are most important to your company.
If you have any questions do not hesitate to contact your Baker Tilly adviser.