Signals from US territorial tax

Emerging markets like India could well be beneficiaries

One measure of polarisation in the public discourse in the US is clear from the divergent analyses on the impact of the “territorial tax” proposal in the impending tax reform Bill. Yet one thing is certain. Among the many sweeping changes in the Bill — the Senate and House of Representative versions are being reconciled before it goes for the President’s signature — the territorial tax will have some impact on US corporations’ overseas investment decisions and, therefore, on emerging markets like India. The territorial method of taxing profits from the overseas subsidiaries of US corporations essentially aligns US tax