On 4^th July 2025, President Trump signed into law the One Big Beautiful Bill (“OBBB”) Act following its passage through Congress the day before.  This landmark bill covers a wide range of matters such as:

• Healthcare and public health initiatives;
• Tax reforms and incentives;
• Energy policy and environmental regulations;
• Defence and national security provisions;
• Education funding and policy changes;
• Agricultural supports and rural development;
• Transportation and infrastructure investments; and
• Immigration and border security.

Briefly, some key international tax changes as follows:

• Renaming Global intangible low-taxed income (“GILTI”) to Net CFC Test Income (“NCTI”) with an effective rate of 14% and other changes such as the elimination of most expense apportionments and reduction of Foreign Tax Credit limitations;
• Renaming Foreign-Derived Intangible Income (“FDII”) to Foreign-Derived Deduction Eligible Income (“FDDEI”), and establish a 14% rate, with parallel changes to those in GILTI;
• The Base Erosion Anti-Abuse Tax (“BEAT”) rate is raised to 10.5% and preserve current policy on allowability of U.S. tax credits under BEAT.
• Making permanent the Controlled Foreign Corporation (“CFC”) “Look-Through” Rule; and
• Establishing a 1% remittances tax on all remittance senders of money (with certain exemptions).

Many tax benefits of President Trump’s 2017 Tax Cuts and Jobs Act (“TCJA”) have also been extended.

At Taxise Asia LLC (WTS Taxise), we follow international tax and trade developments across APAC, the U.S., Europe, and other regions.  We will be doing a briefing together with the U.S. advisors we work with to provide updates on the OBBB Act.  Stay tuned!

Further Reading: https://taxfoundation.org/research/all/federal/big-beautiful-bill-senate-gop-tax-plan/

For further details, please feel free to reach out to: 

Eugene Lim
Founding Principal
E-mail: Eugene.Lim@TaxiseAsia.com
Tel:+65 8962 8202

Jack Hu
Legal Manager
E-mail: Jack.Hu@TaxiseAsia.com
Tel:+65 8962 8184