Tax reform readiness: BEAT mechanics and selected issues

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August 2018

Overview

Among the many significant provisions of the 2017 tax reform act (the Act), the new base erosion and anti-abuse tax (BEAT) is one of the most consequential — and surprising — for many taxpayers.

PwC on August 1 hosted a webcast featuring PwC specialists who discussed the mechanics of the BEAT and some key related issues. This Insight highlights some of those discussions. Watch the webcast replay and register for future webcasts in PwC’s Tax Reform Readiness series, which addresses other areas affected by tax reform.

The next webcast — Tax reform readiness: Implications for US tax treaties — will take place on Wednesday, August 8, from 2:00 PM - 3:00 PM (EDT).

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The takeaway

Pending IRS guidance, there are many uncertainties that companies may need to address in the interim regarding the BEAT, especially given the profound impact it can have on companies from both tax and financial reporting standpoints.  Taxpayers will need to model and evaluate their current operating footprint and transfer pricing policies to assess their BEAT exposure and whether there are any mitigating steps they can take now to address some of the risk.  Taxpayers also will need to be aware of the possible effects of the BEAT’s interaction with other tax provisions, as well as broader implications for relationships with US trading partners.

Contact us

Alex Voloshko

Value Chain Transformation Leader, PwC US

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