International tax lawyers are scrutinizing a state and local funding bill signed by President Barack Obama on Aug. 10 that significantly curbs how U.S. multinational corporations can use foreign tax credits.
The administration bills the changes as closing international tax loopholes for multinational companies. In practice, they’ll significantly change big companies’ tax decisions and have a far-reaching impact on foreign corporate transactions.
The provisions’ effective dates range from immediately to the tax filer’s first taxable year that starts after Dec. 31, 2011.
via New Legislation Will Curb How Multinationals Can Use Foreign Tax Credits.
