![New Jersey Budget, New Jersey Millionaire's Tax, New Jersey Millionaire tax](https://taxfoundation.org/wp-content/uploads/2019/03/new-jersey-1746121_1920-300x200.jpg)
Blog Articles
![New Jersey Budget, New Jersey Millionaire's Tax, New Jersey Millionaire tax](https://taxfoundation.org/wp-content/uploads/2019/03/new-jersey-1746121_1920-300x200.jpg)
![Netherlands Controlled Foreign Corporation Rules. Netherlands CFC rules, Dutch tax system, Netherlands corporate tax, Netherlands tax](https://taxfoundation.org/wp-content/uploads/2019/07/Netherlands-CFC-rules-Dutch-tax-system-Netherlands-tax-300x203.jpg)
How Controlled Foreign Corporation Rules Look Around the World: Netherlands
The Dutch tax system is characterized by its simplicity and the attractiveness to investors. With the incorporation of CFC rules, the Dutch government protected its tax base from erosion and profit shifting. The Netherlands is facing a whole series of adjustments that would create a more complex system adapted to the international standards recommended by the OECD and adopted by the European Union Council. When revising the rules authorities must be mindful about not making the system more complex and to avoid increasing the compliance burden in the country.
5 min read![New Markets Tax Credit NMTC](https://taxfoundation.org/wp-content/uploads/2019/07/opportunity-zones-300x200.jpg)
![Japanese tax and benefit system working parents Japan marginal tax rates Japan CFC rules Japenese CFC rules, Japan corporate tax rules, Japan tax rules](https://taxfoundation.org/wp-content/uploads/2019/07/Japan4-e1562176810493-300x200.jpeg)
How Controlled Foreign Corporation Rules Look Around the World: Japan
Japan is a country with a complex multilayer system to calculate the corporate income tax. As a consequence, the CFC income determination has evolved as a complex set of rules to complement the corporate income tax. It would be a great idea for the Japanese authorities to address a simplification of the rules to facilitate the entry of new capital investments into their economy.
7 min read![Wyoming National Retail Fairness Act Analysis, Wyoming retail tax, Wyoming throwback rule, wins above replacement](https://taxfoundation.org/wp-content/uploads/2019/07/Wyoming-1-e1562099186665-300x167.jpg)
![Beto O'Rourke War Tax, Beto tax, Beto O'Rourke tax, Beto war tax, Beto O'Rourke war tax](https://taxfoundation.org/wp-content/uploads/2019/07/Beto-300x178.jpg)
![high-income households, van hollen, step-up basis, van hollen surtax bill, removing incentives for outsourcing](https://taxfoundation.org/wp-content/uploads/2019/07/money-dollars-e1561996314930-300x208.jpg)
Senator Van Hollen Introduces Proposal to Raise Taxes on High-Income Households
Van Hollen’s proposals add to the long list of Democratic Party tax proposals that attempt to both raise additional revenue from corporations and high-income households and make the tax code more progressive and “equitable.”
3 min read![Texas car sharing tax. Texas excise tax texas property tax, texas margin tax, texas gross receipts tax, greg abbott, texas sales tax](https://taxfoundation.org/wp-content/uploads/2019/07/Texas-capitol-flag-e1561994753907-300x169.jpeg)
![Wisconsin budget surplus Wisconsin budget tax proposals Wisconsin property tax system, Wisconsin State Assembly, Wisconsin Committee on Community Development](https://taxfoundation.org/wp-content/uploads/2019/06/madison-wisconsin-300x200.jpg)
![U.S. Federal Individual Income Tax Rates History, 1862-2021, U.S. federal historical income tax rates, historical federal tax rates, and historical federal income tax rates income tax rates history tax deductions, regressivity of tax deductions](https://taxfoundation.org/wp-content/uploads/2019/06/tax-compliance-1040-costs-e1561735884922-300x200.jpeg)
The Regressivity of Deductions
3 min read![international debt sharing, debt financing, market value of a firm, lend money](https://taxfoundation.org/wp-content/uploads/2019/06/international-competition-globe-enhaced-e1561651253753-300x200.jpg)
The Economics Behind Thin-Cap Rules
6 min read![opportunity zone effectiveness, opportunity zone benefits, opportunity zone tax break](https://taxfoundation.org/wp-content/uploads/2019/06/opportunity-zone-effectiveness-opportunity-zone-benefits-opportunity-zone-tax-break-e1561559845855-300x200.jpg)
![small business tax relief, small business tax compliance, small business compliance, small businesses](https://taxfoundation.org/wp-content/uploads/2019/06/work-investment-job-economic-impact-300x200.jpg)
![digitalization of the economy, international tax treaty system, OECD digital economy](https://taxfoundation.org/wp-content/uploads/2019/06/flag-international-global-300x240.jpg)
![SALT cap repeal, State and local tax deduction cap repeal (state and local tax cap). Repealing the cap on the State and Local Tax Deduction would be regressive and mainly benefit the wealthy SALT deduction cap, House Ways and Means Committee testimony, impact of limiting SALT deduction, SALT deduction cap, State and Local Tax Deduction cap](https://taxfoundation.org/wp-content/uploads/2019/06/capitol-us-capitol-hearing-event-federal-e1561477935763-300x200.jpeg)
Testimony before the House Ways and Means Select Revenue Measures Subcommittee
Watch Nicole Kaeding, Vice President of Federal and Special Projects at the Tax Foundation, testify before the House Ways and Means Select Revenue Measures Subcomittee on the impact of limiting the SALT deduction.
23 min read![Tax Cuts and Jobs Act offshoring Controlled Foreign Corporation rules around the world CFC rules US CFC rules passive foreign investment companies, PFICs GILTI, global minimum tax](https://taxfoundation.org/wp-content/uploads/2019/06/linkedin-In-Stream_Wide___interntional-global-map-gilti-e1561400252793-300x158.jpg)
How Controlled Foreign Corporation Rules Look Around the World: United States of America
The United States was the first country to enact CFC rules, and it is probably the country with the most complex set of rules that will be presented in this blog series. The rules determine control using a combined ownership test: one for the corporation and the other at the shareholder level. The assessable income under the rules is generally passive income but the amount of foreign income subject to U.S. tax has expanded with the adoption of GILTI.
10 min read![Massachusetts millionaire tax, Massachusetts millionaires' tax amendment](https://taxfoundation.org/wp-content/uploads/2019/06/FINAL-013-300x251.png)
![Maine hotels, Maine campgrounds, Maine food, Maine lobster, Portland Maine, Maine lighthouses](https://taxfoundation.org/wp-content/uploads/2019/06/Maine-lighthouse-e1561044663184-300x168.jpg)
![intellectual property IP tax GILTI FDII global minimum tax Biden tax patent boxes impact business, patent boxes, software, intellectual property tax](https://taxfoundation.org/wp-content/uploads/2019/06/IP-patent-boxe-e1561041263501-300x184.jpeg)
How Patent Boxes Impact Business Decisions
As with every change in tax policy, there are trade-offs. The Modified Nexus Approach adds an additional layer of complexity to the already complex issue of taxing IP income. Linking tax breaks for IP income to its associated R&D activity has changed the game and will likely result in some businesses restructuring and relocating their IP assets and R&D activity. Effective tax rates on IP income will likely play an important role in determining optimal locations, giving measures such as R&D credits more importance. Whether this new approach to IP taxation will impact profit shifting and which countries will be the winners and losers is yet to be seen.
6 min read![OECD global tax deal CFC Rules, OECD CFC, OECD multinational, OECD minimum tax, OECD multinational companies](https://taxfoundation.org/wp-content/uploads/2019/06/international-globe-enhanced-e1560780254911-300x200.jpg)
CFC Rules Around the World
Our paper undertakes a review of controlled foreign corporation (CFC) rules around the world as a contribution to the global discussion over the possible expansion of existing anti-base erosion CFC regimes or the potential adoption of a minimum tax.
3 min read