Targets and priorities of American TNCs activities taxation

Abstract

Introduction. Nowadays transnational corporations are the main subjects of international economic activity, and, as a result, they are the biggest taxpayers. When choosing a certain jurisdiction for conducting operations tax field of a country plays a significant role in the decision of the TNC to enter a particular market. Under these conditions, there are more calls for a full revision of the current rules regarding corporate taxation of American TNCs, which aims to strengthen global competitiveness and attractiveness of business in US. The modern borders and trends in the application of international tax planning of US TNCs must be determined to destroy offshore tax loopholes and strengthen the tax legislation.

The aim of the article is to determine targets of American TNCs activities taxation and clarify priorities to modify US tax law.

Method. The general scientific and special methods have been used in this article. They are the method of generalization, analysis and synthesis method, method of systematic approach, method of graphic analysis.

Results. The systematic and complex research of the US TNC taxation is completed. It has been found out that foreign income and taxes of US TNC steadily increased, while the effective tax rate on this income remained stable. American TNC uses multiple methods of tax planning to minimize the tax burden, including abroad. The limits and direction in tax optimizing are defined. The attention has been focusds on the mechanism of check-the-box. The necessity to carry out the tax reform, which is to reduce the tax rate, excluding tax on foreign income, the introduction of new non-corporate income tax and a close relationship between tax payments and amount of income received is justified.