US President Donald Trump has signalled plans to question the right of any country to tax American multinational corporations and is threatening to take countermeasures against countries that do not, in effect, cede their tax sovereignty over US multinationals operating within their own borders.
The U.S. government, under President Trump, is pushing to prevent other nations from taxing American multinational corporations, effectively challenging global tax sovereignty. A recent memorandum instructs the U.S. Treasury to take action against countries that enforce tax rules impacting U.S. businesses, signaling a withdrawal from international tax cooperation.
Key Developments
- Extended U.S. Tax Protection: The U.S. aims to tax its multinationals exclusively, limiting other nations' rights to impose taxes on U.S.-based companies operating abroad.
- OECD Global Minimum Tax Rejection: The U.S. has officially withdrawn from the OECD's global tax framework, potentially triggering conflicts with other countries seeking to tax U.S. corporations fairly.
- Potential Sanctions: The U.S. may revenge against nations that impose taxes on U.S. multinationals, putting global tax agreements at risk.
Recommendations for Businesses located in Taiwan or U.S.
- Monitor Policy Changes: Stay updated on U.S. tax policies and the Taiwan-U.S. tax treaty's progress.
- Evaluate Tax Exposure: Taiwanese firms operating in the U.S. should assess potential benefits from the treaty.
- Consult Tax Experts: Ensure compliance and optimize tax structures based on new regulations.
source: https://taxjustice.net/press/trump-demands-countries-surrender-tax-sovereignty-at-economic-gunpoint/
