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U.S. Global Tax Rules Drive Away IP, Blackstone’s Samuels Says

April 16, 2019, 8:44 PM

A provision of the new U.S. international tax rules that was designed to bring home intellectual property may be having the opposite effect.

“By setting the rate at 10.5 percent, Congress may have undercut the very purpose of enacting GILTI,” said John Samuels, a senior managing director and chairman of global tax at Blackstone Group LP. “Namely, to eliminate the tax incentive that companies have to not transfer patents and other valuable intangible assets to low-tax countries.”

  • The 2017 tax law introduced the global intangible low-tax income (GILTI) provisions, a 10.5 percent tax on profit above a deemed rate ...

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