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Energy Credits’ Treatment in Global Tax Deal Detailed By OECD

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Energy Credits’ Treatment in Global Tax Deal Detailed By OECD

  • By Lauren Vella

The OECD clarified that the global minimum tax will treat the Inflation Reduction Act’s transferable tax credits as additional income rather than a reduction in tax paid. This means that businesses will not be subject to the undertaxed profits rule if they use the credits to lower their tax expenses.

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