Cross-border Tax Talks Podcast | US STOCK BUY-BACK TAX: A FUNDING CONUNDRUM | Nita Asher

Doug McHoney (PwC’s International Tax Services Global Leader) is joined by Nita Asher, International Tax Partner in PwC’s Washington National Tax Practice and former legislative counsel to the Joint Committee of Taxation during the enactment of TCJA in 2017. Doug and Nita focus on the Stock Buyback Excise Tax enacted under the Inflation Reduction Act. Doug and Nita walk through Notice 2023-2, the recently released procedural and technical regulations, including the elimination of the per se rule, the funding rule, and which other countries are considering similar rules. They also discuss how the excise tax could present a multi-year reporting exercise for taxpayers, utilizing Forms 720 and 7208. Non-US headquartered companies will be very interested in this conversation!

Timestamps:

3:00 - What is the background on the Excise Tax signed into law in 2022 by President Biden?
6:00 – Right now, the excise tax is only 1%, but there are proposals to raise that, correct?
7:55 – How is the excise tax base computed?
9:36 – What were the takeaways from Notice 2023-2, which was released in December 2022?
13:38 – What were the key takeaways from the proposed procedural regulations?
17:40 – What are the key takeaways from the proposed technical regulations?
23:10 – What can we learn from other funding rules?
29:10 – What should non-US headquartered companies consider as we await final regulations?
31:55 – Besides the funding rule, what else should taxpayers consider?
33:35 – Are other countries responding to the US excise tax?