Join BDO's Center for Corporate Governance Amy Rojik as she discusses what may be in store for corporate tax reform under President Biden’s administration with Todd Simmens, one of BDO’s National Tax Partners.

Key Takeaways

Talking points indicate President Biden is in favor of scaling back provisions put forth by the prior administration

Key corporate tax anticipated changes include:

increasing the corporate tax rate from the current 21% up to 28%

restoring the Alternative Minimum Tax to a rate of 15%

increasing GILTI tax up to 21% (from current 10%-13%)

The pandemic remains the priority, but we may expect to see procedurally certain tax provisions included within any additional stimulus legislation, akin to what was done with the enactment of the CARES Act

Tax reforms may be permanent or temporary: Reminder that some of the prior administration tax reforms were temporary and are set to expire in 2026

Boards are encouraged to remain abreast of this area as part of their oversight of management’s corporate strategy, as tax considerations will undoubtedly have significant impacts in business decision-making

Resources:

BDO 2020 Tax Survey – stay tuned for the BDO 2021 Tax Survey - February 2021 release

BDO Tax Resource Center

Corporate Tax Reform: What May Be Forthcoming from the Biden Administration