Multinational automakers and suppliers may be able to reduce their tax rate by capitalizing on their foreign-derived income. As part of H.R. 1, commonly known as the Tax Cuts and Jobs Act, Congress added a section that effectively establishes a new preferential tax rate by which automakers and suppliers, organized as domestic C corporations, can generate income derived from qualifying foreign sales, licensing, leasing and service activities.
A look into how to deal with the various tax risks associated with the uncertainty of the Tax Cuts and Jobs Act. Many taxpayers and their advisors are frustrated by the uncertainties created by a number of new provisions of the Tax Cuts and Jobs Act of 2017. Some uncertainties are unavoidable – such as whether the new 20 percent pass-through deduction and other individual provisions will be made permanent, or whether the 21 percent corporate tax rate, theoretically ‘permanent,’ will be increased by a later Congress.
While Fulfillment by Amazon (FBA) can provide advantages to consumer products businesses there are key areas you should address to ensure success. Amazon FBA is fast becoming a growing customer for both branded and private label businesses. According to Fortune, Amazon more than doubled the total items it delivered for third-party sellers to two billion in 2016 from the year prior. Active sellers using FBA rose more than 70 percent, and these numbers are expected to continue to rise. Amazon FBA could be a great opportunity to market and sell your products to millions of consumers, without the uncertainty of chargebacks and discounts encountered when selling to traditional bricks-and-mortar and online retailers.
Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
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