• Service: Advisory
  • Type: Publication series
  • Date: 7/23/2009

Proposed International Tax Reform the Most Significant in Decades 

Changes to international tax law proposed by the administration in May 2009 would,  if enacted by Congress, represent the most significant international tax reform in several decades, affecting the foreign operations of every U.S. company doing business abroad.

Under existing U.S. tax rules, companies may defer paying taxes at rates as high as 35 percent on most types of  foreign profits so long as that money remains invested overseas. The administration proposals are intended to reduce
incentives to invest overseas so that companies would be more likely to invest in the United States.


The potential consequences of these proposals include a significant increase in the financial accounting and cash effective tax rates of affected companies, accompanied by a corresponding reduction in net income and earnings per share.


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Kapila Anand

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