The Biden administration has published its Made in America tax plan setting out proposed corporate tax reforms, including:
- increasing the corporate tax rate from 21% to 28%;
- repealing the foreign-derived intangible income regime, introduced in 2017, which provides for a reduced rate of corporation tax on foreign derived intangible profits;
- reforming the global intangible low-tax income regime; and
replacing the base erosion and anti-abuse tax regime with the introduction of ‘stopping harmful inversions and ending low-tax developments’, which is intended to target profit shifting to low-taxed jurisdictions by multinational corporations more effectively.
