H.R. 1 signed into law — now what? - KPMG Global
Share with your friends
H.R. 1 signed into law — now what?

H.R. 1 signed into law — now what?

H.R. 1 signed into law — now what?

H.R. 1 signed into law — now what?

It’s fair to say that the new US federal tax law has generally been well received by the business community, particularly in light of the reduction of the top corporate rate to 21 percent. The reduction from the former top rate of 35 percent is intended to make the US corporate rate more in line with those in other parts of the world and could have a number of significant effects on US corporations. The new law, however, was passed in record time and a result of this speed is that there’s a good deal of uncertainty and lack of clarity regarding many of its provisions, including the steps necessary for implementation.

Further complicating this issue is a difficult political environment on Capitol Hill. At this point, there does not appear to be the appetite or enough support in Congress to pass a technical corrections bill to clarify provisions. Bear in mind that, with longstanding congressional rules, it likely will take 60 senators to approve technical corrections, while only 50 were needed to pass the law itself.

In place of a technical corrections package, CTOs are looking for guidance from the Treasury and the IRS. Some guidance has been issued, and a whole slew of additional guidance has been promised to arrive well before the end of 2018.

In this issue of CTO Insights, we’ll address three aspects of the new tax law that CTOs are particularly concerned with:

— the taxation of multinational entities
— executive compensation and Section 162(m) changes
— efforts to influence the conversation.