Corporate dealmakers have a new complication to consider starting next year, with the introduction of a minimum tax that’s set to affect a type of divestiture that until now has gone untaxed. Some split-offs—where a publicly listed parent company hives off a unit and stockholders then choose whether to own shares in either the parent or the new company—are set to be affected by the new 15 percent corporate “book tax.”

Split-offs can generate earnings for the parent on its financial statements, and from 2023 onward, those earnings will be subject to the new 15 percent minimum levy for companies with at least $1 billion of profits reported to shareholders. Financial accounting figures weren’t previously used for determining corporate tax liabilities.

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 © 2022 ALM Global, LLC. All Rights Reserved.