The brand new R&D legislation has overly broad language that states that “all” software program improvement should be amortized over 5 years if the event befell in the USA, or over 15 years if the work was performed in the USA. international. Change does not sound so unhealthy on its floor; some say it might even create extra tech jobs within the US
However that is not how it is going to play out. Many international locations have higher R&D credit than the USA. A lot of the software program improvement in the USA will transfer to international locations like the UK, the place the the principles are easyr and extra profitable. For tax-smart corporations, US entities will solely be used for advertising and marketing and gross sales.
crystal stranger is a Federally Licensed Tax EA and Chief Working Officer of GBS Tax. She beforehand labored as a software program developer in San Francisco.
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