Italy-US a great partnership over the years, how it will change after HR 1?

The U.S. is the largest foreign employer and owner of foreign-controlled companies in Italy (2,347 companies with almost 279,000 employees*).In total, there are 14,007 foreign-controlled companies present in Italy, employing 1.3 million people and achieving a turnover of circa 530 billion euros* (figures from 2015).

These are impressive numbers that confirm Italy’s attractiveness to other countries for foreign investment. At the same time, the U.S. is the leading market for Italian companies, with more than 142,000 employees in the industry sector and 109,000 in the services sector.

This synergy is strategic for the economies of both countries. We are now faced with the very important question of “how will the tax reform legislation (HR 1) affect this dynamic?” HR 1 will permanently lower the US federal corporate income tax rate from 35 percent to 20 percent. It will also repeal the corporate alternative minimum tax (AMT), while retaining a modified individual AMT with higher exemption amounts and phase-out thresholds. This may sound good at first, but it is actually quite complicated with many different perspectives that must be taken into consideration.

For this reason, it is extremely important to choose a partner that knows both economies well and has offices in both countries.

Author

Share :