The U.S. Treasury Department 's proposal, which could be announced as early as next week, would allow businesses to fully benefit from tax deductions for research and development (R&D) activities under the Big and Beautiful Act.
The proposal, soon to be released, will address a long-standing issue: the 15% minimum tax rate imposed under former President Joe Biden on businesses with profits of $1 billion or more, which has hampered businesses from claiming R&D tax deductions.
Guidance from the U.S. Treasury Department will address those concerns of businesses. The R&D tax deduction, along with other adjustments proposed by the Treasury Department, is highly significant for businesses with extensive research-related activities, such as technology, pharmaceutical, and manufacturing companies.
The Big and Beautiful Act allows businesses to apply for tax deductions, estimated at $67 billion. However, the deductions are so large that they will force a range of businesses to pay the minimum 15% tax rate. Airbnb Inc., Broadcom Inc., and Applied Materials Inc. are among the businesses that have stated that the excessively large tax deductions could force them to pay the minimum 15% tax rate or miss out on hundreds of millions of dollars in tax credits related to previously paying minimum taxes.
The Treasury Department's corporate tax guidance will be the latest victory for large businesses and will provide additional support to tax initiatives under the Big and Beautiful Act. This act fully restored the tax deduction for R&D investments that had expired in 2022.
Source: https://vtv.vn/my-tang-cuong-uu-dai-thue-cho-cac-doanh-nghiep-lon-100251212164249297.htm
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