By now you’ve certainly heard a lot about the major changes, as well as some of the immediate impacts of US tax reform (“tax reform”). But the headlines don’t tell the full story - some of the most impactful changes lie deep beneath the surface and are yet to be uncovered. The ongoing impact isn’t easy to untangle, but will influence business bottom lines and global operations differently for years to come. If you haven’t fully unraveled what the reform means for your enterprise, here are a few places you can start.
US Tax reform – it’s not about making tax simple
The changes created by tax reform have different impacts depending on business type, industry, size and geography, so it’s important to understand how each company is directly affected. It’s necessary to take a close look and read the fine print of the reform, not just articles and publications by others.
For instance, manufacturers would need to look closely at the loss of the manufacturing deduction, while the insurance and financial sectors have provisions that only apply to their specific industries. There are different provisions applying to pass-through entities versus corporate entities and the breadth of the international tax provisions may vary in impact for subsidiaries of US multinational-headquartered companies versus foreign-headquartered companies.