On 20 December 2017, US tax reform legislation was passed by both Houses of Congress after the US House of Representatives voted to approve the measure (the US Senate vote was the day before). The legislation, commonly known as the Tax Cuts and Jobs Act (TCJA) is expected to be signed into law by President Donald Trump on 3 January 2018. The slight delay in signing is anticipated as necessary to avoid triggering automatic spending cuts under the so-called PAYGO provision.
The TCJA is the most significant overhaul of US tax rules since 1986 and will have a profound influence on US business activity, on the businesses and economies of other countries, and on the direction of tax changes, both globally through the G20/OECD processes, and in individual countries, including China.
The TCJA makes many changes of purely US domestic interest – we focus primarily on those with a cross-border relevance, and Chinese interest, including:
The TCJA has profound implications for global business activity, both by US and foreign companies, and for tax policy at global and individual country level. From a China perspective a number of matters come to the fore:
KPMG’s analysis on Conference Agreement for H.R. 1, Tax Cuts and Jobs Act, released on 18 December 2017. Click here to read the full report.