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Medtech To Benefit From 20% Corporate Rate, Tax-Free Foreign Transfers In Pending US Tax Bill

 
• By Sue Darcey

Medical device firms will benefit from a Republican tax bill that has passed the full US House and a key Senate committee. The bill lowers the corporate tax rate to 20% from a maximum of 35%, treats foreign-earned intangible income at a favorably low rate of 12.5%, and permits tax-free transfers of intangible corporate property, such as patents, from foreign firms to US parents.

Tax Reform with US flag
The House and a Senate panel have approved a GOP tax bill lowering corporate tax rates. • Source: Shutterstock

Multinational medical device firms, and even those who operate solely in the US, could enjoy a good portion of tax relief from a Republican tax bill now working its way through the Senate and approved by the House Nov. 17. But the last-minute inclusion of a provision that would repeal the Affordable Care Act's individual mandate endangers a full Senate 'yes' vote on the legislation.

The House version of the bill does not contain a repeal of the ACA individual mandate. If such a provision passed in the Senate, it would set up tug-of-war between...

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