U.S. and foreign corporation taxable year start dates |
Base Erosion and Anti-Abuse tax rate |
after December 31, 2022, and before January 1, 2024 |
12.5% |
after December 31, 2023, and before January 1, 2025 |
15% |
after December 31, 2024 |
18% |
1). |
Before 2022, when the company has received payment through a third-party service platform, and the payment amount is greater than $20,000 and the transaction volume exceeds 200, the third-party platform must provide the company with a 1099-K form. Companies must report income from a 1099-K to the IRS. |
2). |
Beginning in 2022, when a company receives payment through a third-party service platform, and the payment amount is greater than $600 and there is any transaction volume, the third-party platform must provide the company with a 1099-K form. Companies must report income from a 1099-K to the IRS. |
3). |
Third-party platforms, mainly include PayPal, Venmo, eBay, Uber, Stripe, etc. |
4). |
Form 1099-k stands for "Payment Card and Third-Party Network Transactions". This form is primarily used to report the company's revenue through third-party trading platforms. |
1). |
This income deduction does not encourage U.S. companies to conduct domestic research and development. After the income deduction is repealed, the resulting income will be used to encourage research and development activities by U.S. companies. |
2). |
This income deduction prefers multinational corporations over U.S. domestic corporations. Also, this income deduction provides tax benefits only to companies with high export sales, not companies that sell primarily domestically. |
3). |
This income deduction reversely encourages U.S. companies to move certain economic activities outside the United States. |
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