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US Tax Reform Affecting Shareholders in Foreign Corporations

US Tax Reform Affecting Shareholders in Foreign Corporations

Friday 2nd March 2018

President Trump's tax reform bill contained some major revisions to the taxation of shareholders in ‘Controlled Foreign Corporations’, that is to say non-US companies controlled by US persons. These provisions contained a one-time ‘repatriation tax’ in respect of undistributed earnings, which is retrospective to the 2017 tax year. 

We are currently working with all clients we know may be affected by this. If you acquired shares in a non-US company in 2017 please contact us immediately so that we can assess the impact of this and discuss how it can be managed. Failure to take action by 17 April 2018 could give rise to a material tax charge.