Heads up. The Department of Treasury has made significant tax reforms beginning in the year 2020. These changes affect corporations more than individuals who will retain their usual 5% tax credit, while the former will see their’s lovered from 30% to 37.5%. Companies with profits between three and 10 million will get to choose whether to file a compliance attestation or a pre-approved procedures form. Not only will this diminish audits, it will lower financial reports by 75%.
Key Takeaways:
- The new tax reforms include a 5% credit for filing individually amd a 1.5% reduction for corporations.
- In addition, corporations with three to ten million dollars in profits can file a Compliance Attestation form or one labeled for Agreed Upon Procedures.
- The Treasury Departments hopes that these amendments will lower the amount of financial reports by almost 75%.
“The five percent credit will remain for those who file as an individual, while the 39 percent tax for corporations will be reduced to 37.5 percent.”
