Get ready to say “adios,” “au revoir” and “zai jian” to some big tax benefits, if your company does business internationally or is hoping to.
President Obama is launching a get-tough crackdown on multinational corporations. And businesses are not happy, to say the least.
Here’s what you need to know.
A full-on blitz
Obama just announced an aggressive plan, set to kick in in 2011. You’ll want to huddle with your CFO as soon as possible to talk about the implications for your company. Among the biggies:
* No more deferral of taxes on some income generated abroad.
* An end to the tax credit for paying taxes to foreign governments, and
* A spike in enforcement, with IRS’s specific target: “tax havens.”
To soften the blow a bit, you will be able to permanently enjoy one biz tax credit for keeping more of that biz in the United States. The “Research and Experimentation Tax Credit” was set to expire at the end of ’09. It’s been extended indefinitely.