New tax rules favor taxpayers, creating surprising effects and incentives.
The recent Tax Cuts and Jobs Act made big changes to how U.S. taxes work for international business. One change is a new tax credit for U.S. shareholders who get income from foreign companies. The Act also made other changes to how foreign taxes are used to reduce U.S. taxes. These changes are more generous to taxpayers than they need to be. The new rules can create unexpected effects and incentives for how companies do business internationally.