The US IRS today released final regulations on the base erosion and anti-abuse tax (BEAT).
Added in the Tax Cuts and Jobs Act, the BEAT is imposed on large corporations that make certain deductible payments to related foreign parties.
The final regulations provide detailed guidance regarding how to make BEAT calculations for groups of related taxpayers. The final regulations also contain rules permitting taxpayers to waive deductions for purposes of the BEAT, and additional guidance regarding partnerships and anti-abuse rules.
According to the Service, the final regulations retain the basic approach of the proposed regs (REG-112607-19) issued on December 6, 2019, with some revisions.
MNE tax brings out all latest amendments upon being released by tax offices in various jurisdictions. This helps MNEs to get all tax amendments and its impact on business. BEAT is another illustration of the same