Source: The Hindu Business Line
The Hyderabad Software Exporters? Association (HYSEA) has felt that the new tax proposals made by the US President, Barack Obama, would impact the US headquarter companies with overseas operations.
?It is important to note that most large American companies have significant (more than 40-50 percent) revenues coming from markets outside the US and would be affected by the proposed tax reforms, if implemented,? M. Narasimha Rao, President of HYSEA, said here in a statement.
?The current proposal aims to raise the tax revenues for the US Government and also take away some incentives for the industry when they work outside of the US,? he said.
The tax reforms were just proposed and there would be extended debate on them before they could be implemented. ?We also expect to get greater clarity along with some changes before its finally implemented,? he said.
On the face of it, the proposed legislation was aimed at creating barriers for global trade. This, in fact, would actually hurt the US industry as also its society in the long run.
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