In an effort to better understand what the Border Adjustment Tax (BAT) may mean for the industry, we are asking AAFA members to fill out this brief survey. As a reminder, the BAT concept relates to a proposed change in the way corporate taxes are assessed:
- The proposal – as part of a larger package of corporate tax reform that includes, among other things, a reduction in tax rates – would deny the deductibility of costs of goods sold (COGS) when that COGS is associated with imports.
- The Better Way proposal states, “products, services and intangibles that are imported into the United States will be subject to U.S. tax regardless of where they are produced.”
- It would also exempt export revenue and revenue associated with foreign licensing from income tax.
- This should not be confused with the frequent references to “Border Taxes” (i.e., tariffs) that President Trump has included in tweets in the past few months.