International Tax Roundup

Happy New Year! There are so many great topics to cover related to international tax so we are covering some of the highlights:

Brexit – It seemed to happen quietly without much fanfare from across the pond but US companies selling into the EU are being woken. Many are receiving notifications that they need to register for VAT. Under the EU’s VAT Mini One Stop Shop (MOSS) system, they used to be able to register in the UK and remit for all sales in the EU. Not anymore. Learn more from our HLB member firm HLB Sheehan Quinn Brexit and Non-Union MOSS Considerations 

New Administration International Tax Impacts – What could President Biden’s tax plan have in store for international businesses? Some thoughts to consider:

• For corporations, the reduction of the deduction for GILTI income.
• For IC-DISCs, the erosion of benefit due to an increase of the capital gains tax rates
• For non-resident individuals invested in US real estate, the increase in capital gains tax rates upon disposition
• For non-resident individuals earning income above $400k from a US partnership, the increase in marginal tax rates from 37% to 39.6%.
• Foreign corporations doing business in the US, the increase in tax from 21% to 28%
• For US shareholders with foreign subsidiaries, the increase of the high tax exception for GILTI due to the increased corporate tax rate.

The good news is we are unlikely to see immediate changes, per Biden’s focus on the American Rescue Plan.

This year is gearing up to be another exciting one with lots of opportunities for growth. We wish you all the best!