Mike Klyszeiko
Director of Launchpad USA
Amcham Finland

Doug Stransky
Partner
Sullivan Law

Michael Student
Counsel
Sullivan Law

In December 2017, the Tax Cuts and Jobs Act (TCJA) was signed into law, which marked the most significant change to U.S. tax laws in over three decades.

The most significant piece of that legislation was a reduction of the U.S. corporate tax rate from 35% to 21%. There were other pieces of that legislation that greatly incentivized multinational companies to invest in America, employ more American workers, and export their products from the United States. President Biden has made it clear that he plans to make substantial changes to this tax law. With Democrats controlling both chambers of Congress, it is expected that all or at least significant pieces of his proposal will eventually be signed into law.

To guide us through these proposals and discuss with us what they may mean for Finnish enterprises operating in the U.S. market, we welcomed Doug Stransky, Partner at Sullivan Law and leader of his firm’s international tax group, and Michael Student, who is renowned for providing outstanding cross-border commercial legal counsel to Nordic companies in the U.S. market.

Members can request a link to the event recording.

Here are the key highlights:

• U.S. corporate tax rates (both federal and state) are projected to increase under the proposed legislation. The federal tax rate would increase from 21% to 28% and the Alternative Minimum Tax (AMT) would be reinstated. Many states are also planning to raise their tax levels as well.
• A proposed 10% surtax on profits of goods manufactured overseas by U.S. companies then sold back into America.
• A new “Made in America” tax credit for companies that create American jobs.
• Inter-company agreements that address such topics as transfer pricing should be reviewed by Finnish companies in light of these proposed changes.

If you have any questions related to this topic please contact Mike via email or phone!