Page 201 - International Taxation IRS Training Guides

BEAT: Calculation

calculates
 To calculate BEAT, an applicable taxpayer
regular US tax at 21% rate (reduced by certain
its

its base erosion minimum
credits) and then calculates

which is determined by multiplying the
tax amount,

applicable taxpayer’s “modified taxable income”

amount by the BEAT rate

• Modified taxable income is
the applicable taxpayer’s taxable
certain deductible payments (base erosion tax
income plus
benefits)
and a certain percentage of any NOL deduction

• BEAT
rate is 5% for 2018, 10% for 2019-2025, and 12.5%
thereafter
(percentages increased by 1% for certain banks)

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