The Biden Administration and Congress are focused on responding to the COVID-19 pandemic and its economic impact, while also preparing to consider significant tax law changes impacting business and individuals. Important changes in trade policy also are likely. Foreign companies and investors will need to engage early with policymakers to educate them about the vital role they play in the US economy and about their unique concerns.
While the international tax law changes in the Biden tax plan primarily would affect US multinationals, the Congressional tax-writing committees are expected to undertake a broader review of the international tax reforms enacted as part of the 2017 tax reform law (Tax Cuts and Jobs Act, or TCJA) that affect both US and foreign multinationals. The Biden administration also is expected to review TCJA and tax regulations interpreting that law that were issued during the previous administration.