Day: May 12, 2020

Multinationals Derive Huge Benefits From Shifting R&D Abroad

When the Tax Cut and Careers Act (TCJA) was signed into regulation by President Trump in December 2017, its steep reduction of the U.S. company tax fee from 35% to 21% addressed what was broadly viewed as the principal component in companies’ shifting investments and profits overseas — specifically, the disparity among the U.S. tax fee and the a lot lower fees prevailing in some other nations around the world. In a range of community boards, American multinationals had previously been strongly upbraided for accounting maneuvers that shifted to reduced-tax overseas venues cash flow derived from research and enhancement (R&D) at residence.

New research in a foremost accounting journal phone calls into query just how successful the TCJA tax lower could change out to be in stemming the outflow.

A analyze in the recent issue of The Accounting Assessment finds that even before the law’s enactment overseas profits of U.S.-centered

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