What are the key tax changes affecting businesses in 2024?.

In 2024, several key tax changes will affect businesses, focusing on corporate tax rates, deductions, and compliance requirements. Understanding these changes is crucial for strategic financial planning.

Key Facts

• The U.S. corporate tax rate remains at 21% as established in 2017.
• Changes to the Foreign Tax Credit may impact multinational corporations.
• Enhanced deductions for research and development (R&D) expenses are being implemented to stimulate innovation.
• New compliance requirements for digital services tax will affect tech companies.
• The IRS plans to increase audits on small businesses by 25% in 2024.

Examples or Use Cases

• A tech startup could benefit from increased R&D deductions, allowing for reinvestment in innovation.
• Multinational firms may need to adjust their tax strategies due to changes in the Foreign Tax Credit rules.

FAQs

• Will small businesses face higher taxes in 2024? While the corporate rate remains stable, increased audits may lead to more scrutiny on deductions.
• Are there any new tax credits for businesses in 2024? Yes, new incentives for green technologies are being introduced.