Welcome to the KPMG Trade & Customs newsletter. Each month, our firm’s trade compliance professionals will share recent developments of interest to our clients and industry peers in this newsletter. Inquiries about the topics presented herein may be directed to any member of our practice’s leadership team.
An important provision of the recent Tax Cuts and Jobs Act of 2017 is the Base Erosion and Anti-Abuse Tax (BEAT). The BEAT imposes a minimum tax for taxable income adjusted for base erosion payments and is intended to deter U.S. multinationals from eroding their tax base by making tax-deductible payments to foreign affiliates. The law affects businesses where U.S. gross receipts exceed $500 million in aggregate and generally excludes cost of goods sold (COGS) from the base erosion payments.