Kurt Rademacher, Partner, Butler Snow Singapore, decodes for Hubbis the recent US tax reforms and what they mean for wealthy families and individuals based in Asia.
Recent tax reforms have raised questions for businesses wealthy individuals, including those in Asia, but they are not being interpreted entirely accurately, according to Rademacher.Rademacher pointed to tax changes that arose on December 22, 2017, that changed conceptually how the US income tax functions.
“These were fundamental transformational changes that impacted the entire way companies, and individuals need to think about their US tax exposure,” he says.According to him, there was an awful lot of sense, at least in the media, that these changes created a territorial tax regime in the US.
“It is true that part of the changes reduced the corporate level tax rate to 21%, but the idea that we have territorial taxation in the US is not true,” he says.
“That’s a misnomer because the certain provisions that the Tax Reform Act included, chip away at the idea that we would have a territorial, corporate level tax system in the US.”
To read or watch Kurt G. Rademacher‘s interview in its entirety with Hubbis, please visit the link below or play directly from the embed above: