Business Income Tax

• Corporate income tax rate has been permanently lowered from 35% to 21% beginning in 2018.
   
• Pass-through business tax law changed. Starting 2018, income derived from pass-through entities (S corporations, LLCs, partnerships and sole proprietorships) is eligible for a 20% qualified business income deduction. The deductability however, is restricted for taxpayers above $157,500 for single and $315,000 for married filed jointly couples.
   
• With respect to corporate income tax, the new law also changes the U.S. from a worldwide income system to a territorial based system. It means that each corporate subsidiary will pay the tax rate of the country in which it is legally established. In addition, a one-time repatriation tax of profit also encourages companies to bring the money home over time. The Act allows the profit to be taxed at 15.5% for amount invested in cash and other liquid assets, 8% for real estate and other hard assets Abroad.