TaxSource Total

Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

The report of key tax developments are displayed per year, per month, by Ireland, the UK or International and by report title

Wide-ranging tax reform in President Biden’s Made In America Tax Plan

President Joe Biden recently announced the “American Jobs Plan”, a two trillion-dollar capital investment programme in US infrastructure, manufacturing, and research and science. Alongside the American Jobs Plan, the President is proposing the “Made In America Tax Plan” to “fix the corporate tax code so that it incentivizes job creation and investment in the United States, stops unfair and wasteful profit shifting to tax havens, and ensures that large corporations are paying their fair share”.

The Made In America Tax Plan puts forward the following proposals:

  • Increase the corporate tax rate from 21 percent to 28 percent to fund investment in infrastructure, clean energy and R&D.
  • Double the tax rate on Global Intangible Low Tax Income (GILTI) earned by foreign subsidiaries of US firms from 10.5 percent to 21 percent and impose it on a country-by-country basis. The Made In America Tax Plan also proposes eliminating the GILTI exemption that allows US companies to pay zero tax on the first 10 percent of return when they locate investments in foreign countries.
  • The US will support a global agreement on a strong minimum tax through multilateral negotiations to “level the playing field and no longer allow countries to gain a competitive edge by slashing corporate tax rates”.
  • Deny deductions to foreign corporations on payments that could allow them to strip profits out of the US if they are based in a country that does not adopt a strong minimum tax.
  • Prevent US companies from inverting or claiming tax havens as their residence.
  • Deny deductions for expenses that come from offshoring jobs and introduce a tax credit to support onshoring jobs in the US.
  • Eliminate tax incentives for “Foreign Derived Intangible Income”.
  • Apply a 15 percent minimum tax on income large companies use to report their profits to investors known as “book income”.
  • Eliminate tax preferences for fossil fuels and restore payments from polluters into the Superfund Trust Fund.
  • Invest in the Internal Revenue Service so it has the resources to enforce tax laws.