Canadian multinationals with U.S. operations may be affected by proposed new U.S. tax relief.
These changes, which are part of the United States' response to the COVID-19 virus, temporarily reduce the tax payments of corporations and, in some cases, allow refunds of taxes paid in prior years. The United States has also introduced an employee retention credit available to offset employment taxes and has introduced a deferral of payroll tax payments.
These tax measures are included in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which is not yet enacted into law. This Act was passed by the U.S. Senate on March 25, 2020 and is expected to be passed by the U.S. House of Representatives and signed into law by President Trump soon. The Act also includes several tax measures affecting individuals, which will be discussed in a future publication.
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