The direction of US international tax policy in the next congress and new Administration will be determined largely by the outcome of the 2020 federal elections. Former Vice President Joe Biden is projected to have secured more than the required 270 electoral votes to have won the presidency.
While significant reforms to the GILTI regime, implementation of a minimum tax on global book income, or increasing the corporate tax rate to 28% may seem unlikely in the near term, companies should assess opportunities to effectively manage tax costs. President-elect Biden’s comprehensive business tax proposals may be tabled for two years and revisited after the 2022 election. Changes in the nearterm still are expected, however, in the global tax environment (i.e, BEPS 2.0) and the US regulatory environment. MNCs should model strategies to reduce taxable income against its overall tax posture in seeking to avoid an increase in other tax liabilities.
This Insight outlines business tax changes that Biden proposed during his campaign as well as ongoing global tax talks.
