Federal changes in the United States regarding the immediate deduction of certain domestic research and development expenses have created discrepancies between federal regulations and those of several states, according to Thomson Reuters Tax & Accounting.
Some states have aligned themselves with the new federal rules, while others have decided to maintain different treatments or establish their own adjustment mechanisms. The result is a scenario in which the same company may face different tax treatments depending on the state in which it operates.
This situation increases the need for tax reconciliations and specific controls for companies with a presence in multiple jurisdictions.
The U.S. example demonstrates that tax planning does not depend solely on knowledge of national legislation: it also requires identifying territorial differences that can affect deductions, tax bases, and compliance obligations.
Source: Thomson Reuters Tax & Accounting — original article
Editor’s note: Original content prepared for VAG Global based on the indicated source. it does not reproduce the original article exactly.