X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Stock illustration: Drummer keeping the beat

The base erosion and anti-abuse tax known by the acronym “BEAT” was enacted by the Tax Cuts and Jobs Act (TCJA) as a means of limiting intercompany funds flowing out of the United States. For companies that meet certain criteria, the BEAT acts as an alternative minimum tax, with the potential for the additional tax payable to be significant. As such, the BEAT continues to be a significant area of focus for multinationals with U.S. operations, particularly large multinationals with material U.S.-outbound intercompany flows.

Effective management of BEAT exposures is highly specific to the facts and circumstances of each multinational and requires those impacted to perform critical reviews of operations and supporting structures that result in material funds flows. Many intercompany flows that touch the corporate treasury group appear relevant; these could include interest on loans, lease-financing payments, guarantee fees, and service payments to non-U.S. treasury centers.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.