How would formulary apportionment work? Q.How would formulary apportionment work? A.Under the current global system, multinational firms determine their profits separately in each tax jurisdiction in which they operate. An alternative system would allocate a firm’s worldwide income across countries using a formula based on some combination of its sales, assets, and payroll in each jurisdiction. Read more about How would formulary apportionment work?
What is the Book Minimum Tax on corporations? Q.What is the Book Minimum Tax on corporations? A.The 2022 Inflation Reduction Act (IRA) introduced a new corporate minimum tax on book income that became effective January 1, 2023. Read more about What is the Book Minimum Tax on corporations?
How does the corporate income tax work? Q.How does the corporate income tax work? A.The United States imposes a tax on the profits of US resident corporations at a rate of 21 percent (reduced from 35 percent by the 2017 Tax Cuts and Jobs Act). The corporate income tax raised $424.7 billion in fiscal year 2022, accounting for 8.7 percent of total federal receipts and 1.7 percent of GDP. Read more about How does the corporate income tax work?