News: Large-scale tax reform in the USA

Large-scale tax reform in the USA

The tax project, prepared by the Republican Party of the United States, was approved by the Senate.

On December 2, 2017, the Senate accepted the most ambitious bill since the 1980 tax reform.

Its key element is the reduction of the corporate tax from 35% to 20%.

Republicans forecast a significant increase in the competitiveness of the US economy by increasing loyalty to the owners of companies.

In addition, it is proposed to reduce the number of categories of progressive income tax from 7 to 3, namely: 12%, 25%, 35%.

Next week, it is planned to regulate the details of the bill with the House of Representatives, then the project will be submitted to the White House for approval.

The income of American companies obtained in offshore jurisdictions is planned to be subject to one-timetax of 12% and 5% on reinvestment in business in the United States.

The predictable results of the tax reform in the United States include the following:

• development of small and medium-sized businesses in the country's domestic market;

• attraction of additional investments, stimulating the US economy;

• strengthening the position of the dollar in the international foreign exchange market;

• increase in the value of shares and bonds of the companies operating in domestic and international markets.

Through the above bill, the government plans to return trillions of dollars from the US companies abroad.

You will be able to get advice on the registration of a company in the United States from the lawyers of Law&Trust International.