Yellen Reveals US is Negotiating R&D Tax Credit in Global Tax
The United States is in talks with other countries to carve out an allowance for the U.S. research and development tax credit as part of the 15% global minimum tax deal.
More than 140 countries have signed up to the Global Minimum Tax deal. The tax treaty imposes a minimum rate of 15% on the profits of multinationals. The Global Cooperation Barometer launched at Davos calls for more collaboration.
“We are negotiating with other countries right now to try to get favorable treatment for the R&D tax credit and I am hopeful these negotiations will be successful,” said Treasury Secretary Janet Yellen during a hearing before lawmakers in the House of Representatives.
The negotiations are ongoing and decisions are not final. Yellen plans to keep the members of the House Ways and Means Committee apprised of any news. The Treasury Secretary continues to defend the global minimum tax, stating that the “Pillar 2” agreement for a 15% global minimum tax is “very much in support of goals that are good for this country.”
Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.
Who We Are:
Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.
Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.
