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9 November 2017

What You Should Know About The Most Ambitious US Tax Reform In A Generation

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PwC Nigeria

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PwC Nigeria is one of the leading professional services ?rms in Nigeria with of?ces in Lagos, Abuja and Port Harcourt, with over 1,000 staff and 31 resident partners. We are committed to serving as a force for integrity, good sense and wise solutions to the problems facing businesses and the capital markets. We are guided by one promise – to do what is right, be it with our people, clients, community, or environment.
The United States House Ways and Means Committee has released a 429-page "Tax Cuts and Job Act of 2017" bill.
Nigeria Tax

The United States House Ways and Means Committee has released a 429-page "Tax Cuts and Job Act of 2017" bill. The bill seeks to lower the business and individual tax rates, modernise US international tax rules and simplify the tax law with significant impact on numerous sectors of the economy.

Key areas that may be of interest to non-US based multinational entities include:

  1. new 20% excise tax on on certain payments (including royalties and cost of good sold) from domestic corporations to related foreign corporations;
  2. net business interest expense deductions capped at 30% of a business' adjusted taxable income and subject to a global net interest test;
  3. new limitations on tax treaty benefits;
  4. reduced business tax rate of 20% and altered how pass-through income is taxed; and
  5. ability to immediately write off the cost of qualified property (not including structures) acquired and placed in service after September 27, 2017 and before January 1, 2023.

To read more about the bill, see PwC's Tax Insight and Inside Tax Policy.

Join our webcast on the US tax reform entitled Policy on the Move: Sharpen your understanding of how to plan for the most ambitious tax bill in a generation on Monday, November 6th at noon (EST). Register here!

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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