12:04 GMT18 September 2020
Listen Live
    Get short URL
    0 20

    WASHINGTON August 1 (Sputnik) - US companies that repatriate untaxed profits earned overseas will have eight years to pay-off a one-time 15.5 percent levy under the recently passed tax-reform legislation, according to regulations unveiled by the Department of the Treasury on Wednesday.

    "The proposed rules address a one-time transition tax on post-1986, untaxed foreign earnings of specific foreign corporations owned by US shareholders," a press release announcing the regulations said. "Generally, the transition tax can be paid in installments over an eight-year period."

    The Tax Cuts and Jobs Act treats these foreign earnings as repatriated and places a 15.5 percent tax on cash or cash equivalents, the release explained.

    READ MORE: Trump: 'Globalist' Koch Brothers Want to Protect Firms Outside US From Taxes

    An additional 8 percent tax will be imposed on the "remaining earnings," an undefined term that apparently refers to untaxed profits that a company chooses to keep outside the United States, according to the release.

    Prior to the tax-reform law approved late last year, US companies held an estimated $4 trillion in overseas earnings in offshore accounts, presumably to avoid paying a 35 percent tax then in effect, according to published reports.


    Trump: 'Globalist' Koch Brothers Want to Protect Firms Outside US From Taxes
    Investors Dump US Treasury Bonds, Buy Dollars After GDP Data
    US Treasury Head Mnuchin Rebuffs Allegations About Trump Wishing to Leave WTO
    US Treasury Chief Expects $1 Trln Growth in Revenue From Tax Reform
    tax reform, US Treasury, United States
    Community standardsDiscussion