Clinton's tax plan: royalty and R&E provisions for multinationals.
Journal of Accountancy › Vol. 175 Nbr. 5, May 1993
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Summary
Research and experimentation
Bill Clinton's tax policy includes provisions that affect foreign tax credit limitations for multinational companies through research and experimentation (R&E) expenses and the separation of income sources. The R&E provisions attempt to encourage research in the US by not allocating US-based expenses to foreign source income and therefore increasing available foreign tax credits while non-US-based research would add to foreign source income. However, the separation of income sources reduces the ability to shelter low tax income which may encourage overseas production because of royalty income.See the full content of this document
Extract
Clinton's tax plan: royalty and R&E provisions for multinationals.
As expected, the comprehensive economic plan President Clinton submitted to Congress contains a number of provisions affecting multinational corporations.
O...See the full content of this document
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