US issues corrections on base erosion and anti-abuse tax

On February 19, 2020, the US Government issued corrections to Treasury Decision 9885, on the base erosion and anti-abuse tax (BEAT).

Treasury Decision 9885 – issued under section 59A of the Internal Revenue Code – is designed to prevent the reduction of tax liability by certain large corporate taxpayers through certain payments made to foreign related parties and certain tax credits.

According to the Government, Treasury Decision 9885 contained “errors that may prove misleading and therefore need to be corrected.”

The correction is effective from February 19, 2020, and is applicable from December 6, 2019.

See Corrections