US Tax Update: 15% corporate alternative minimum tax enacted

On August 16, President Biden signed the Inflation Reduction Act of 2022 (the "Act") into law. The Act is a roughly USD 740 billion budget reconciliation package that includes some targeted corporate tax increases, a large increase in funding for the Internal Revenue Service, incentives to promote climate change mitigation and clean energy, and provisions to promote health care affordability. The key tax provisions of the Act relate to a 15% corporate alternative minimum tax on companies with profits greater than USD 1 billion and a 1% excise tax on stock repurchases by publicly traded companies. The Act is also notable for the provisions that it does not include (e.g., several international tax provisions that were in an earlier version of the bill). Join us for this AmCham Hong Kong Tax Working Group event where a panel of US tax professionals will provide an overview of, and observations on, the following items:

• Legislative recap of the Act and other activity
• Overview of the 15% corporate minimum tax
• Overview of the 1% excise tax on stock repurchases
• Summary of other key tax provisions (e.g., credits and incentives) and important items not included in the Act
• Closing comments on key takeaways

Although the Act contains only a limited number of corporate tax provisions, taxpayers that are subject to these provisions could be subject to significant additional taxes. This session offers a great opportunity to familiarize yourself with these key provisions, in particular, given (i) the provisions of the corporate minimum tax will become effective for calendar year taxpayers on January 1, 2023 and (ii) the potentially broad application of the excise tax on stock buybacks coupled with an effective date of January 1, 2023.