Enacted on 8 July, H.B. 1342 phases in a corporate net income tax (CNIT) rate reduction over nine years. Starting with tax years beginning after 31 December 2022, H.B. 1342 also implements market-based sourcing for sales of intangible property and enacts economic nexus for entities to be subject to the CNIT.
Personal income tax changes include (1) conformity to IRC Section 179 expense deductions for property placed in service in tax years beginning after 31 December 2022, and (2) conformity to IRC Section 1031 like-kind exchange treatment for transactions occurring in tax years beginning after 31 December 2022.
International Tax and Treasury