Companies Seek Guidance on New U.S. Minimum Tax as Launch Date Nears

With just over two months before the new corporate minimum tax is set to go into effect, companies are asking the U.S. government for guidance on its scope and the potential impact of business transactions such as split-offs.

From Jan. 1, 2023, the tax will apply to large U.S. companies averaging at least $1 billion in publicly reported annual profit over three years.

The tax, which is part of the climate, healthcare and tax law called the Inflation Reduction Act, requires those businesses to calculate their taxes with the existing 21% levy on corporate income as currently defined in the tax code and under a 15% rate based on their book or financial statement income.