Foreign banks in US dismayed by Trump tax on internal TLAC
Coupons on IHC debt issued to foreign parents will face 10% base erosion tax under new rules
Non-US banks with large US subsidiaries say a key aspect of the tax reforms signed into law by President Donald Trump in December is reducing their ability to raise internal total loss absorbing capacity (TLAC), as required by the Federal Reserve.
The Base Erosion and Anti-Abuse Tax (Beat), set at a minimum of 10%, aims to target profits that multinationals move outside the US in an attempt to pay less tax. However, non-US banks say it is being applied to their US subsidiaries issuing bail-in
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