Recently our clients have been asking how will Trump’s new tax reform affect their tax situations. As of this posting, it’s important to know that none of the proposals have been put into place yet. On September 29, 2017, at the Mandarin Oriental Hotel in Washington DC, President Donald Trump laid out his proposed tax plan with these four main principles that he says will fundamentally reform our tax code for the first time in more than 30 years.

  1. Simplify the tax code to make it fair and easy to understand.
  2. Making U.S. companies more competitive.
  3. Tax relief for middle class Americans
  4. Grow the American economy by bringing back trillions of dollars from overseas to the U.S.

The following is a brief summary of the proposed changes that would be put in place under Trump’s tax plan.

Simplify the tax code to make it fair and easy to understand.

  • Increasing the current standard deductions to $12,000 for single filers and $24,000 for married taxpayers filing jointly. Personal exemptions would also be removed and consolidated with the increased standard deductions.
  • Reduce the current individual tax brackets to 3 from the current 7. The proposed rates would be 12%, 25% and 35%.
  • Repeal the Alternative Minimum Tax (AMT). The AMT is an additional tax calculation that may require certain taxpayers to pay an additional tax if they have certain tax preference items (certain deductions that reduce the ordinary tax, or certain income that may not be taxed using the ordinary tax rates).
  • A simplified itemized deduction calculation, still allowing deductions for home mortgage interest and charitable contributions.
  • Elimination of the estate (death tax) and generation skipping tax.

Making U.S. companies more competitive

  • Reduce the maximum small business tax rate to 25%.
  • Reduce corporate tax rates to 20%… which is lower than the 22.5% average of the industrialized world.

Tax relief for middle class Americans

  • Increase the child and dependent tax credits for middle-income families.
  • Proposals that would simplify the benefits for encouraging work, higher education and retirement security while making the benefits more efficient and effective.

Grow the American economy by brining back trillions of dollars from overseas to the U.S

  • Enacting a territorial taxation system for global American companies instead of the current worldwide tax system. This would also treat potential foreign earnings as repatriated back to he U.S. at lower rates.
  • Update and implement rules to level the playing field for U.S. headquartered companies and their foreign related companies.
  • “Expensing” of capital investments to encourage small business spending.

Please contact us if you are in Hong Kong, China or living overseas and have additional questions about how the proposed tax reform may affect you.

The above information is not and should not be used as tax advice. At the time this article was published on October 9th, 2017, none of the proposed tax law changes have been enacted.


特朗普的稅收計劃 – 總結

最近我們的客戶一直在問Trump的新稅收改革將如何影響他們的稅收情況。在這篇文章中,最重要的是要知道任何新建議還未實施。 2017年9月29日,美國時任總統唐納德·特朗普(Donald Trump)在華盛頓特區華盛頓文華東方酒店內,根據以下四項主要原則列出了他提出的稅收計劃,聲稱本次稅改將是30多年來首次從根本性上改革稅法。

  1. 簡化稅法,使其能彰顯公正和易於理解。
  2. 使美國公司更具競爭力。
  3. 中產階級的稅收將會減免。
  4. 通過從海外向美國本地帶回數萬億美元來擴張美國經濟。


  1. 簡化稅法,使其能彰顯公正和易於理解。
  • 將現行標準單身人士扣除額提高至$ 12,000及聯合申報的已婚納稅人扣除額提高至24,000元。個人豁免也將隨著標準扣除額的增加而被刪除和合併。
  • 將目前的個別稅收減免從目前的7個減為3個。擬議的稅率分別為12%,25%和35%。
  • 廢除替代最低稅(AMT)。 AMT是一個額外的稅收計算,如果他們有一些稅收優惠項目(某些減免普通稅或某些可能不會使用普通稅率徵稅的收入),納稅人可能需要繳納附加稅。
  • 簡化的逐項扣除計算,仍然允許扣除房屋抵押貸款利息和慈善捐款。
  • 消除遺產(死亡稅)和一代跳稅 (generation skipping test)。


  1. 使美國公司更具競爭力。
  • 將最低營業稅稅率降至25%。
  • 將企業稅率降低到20%,低於工業化世界平均水平的5%。


  1. 中產階級的稅收將會減免。
  • 增加中等收入家庭的子女和依附稅收抵免。
  • 這些建議將簡化鼓勵工作,高等教育和退休保障的好處,同時使效益更加高效和有效。


  1. 通過從海外向美國本地帶回數萬億美元來擴張美國經濟。
  • 為全球美國公司頒發領土稅收制度,以取代現行的全球稅收制度。這也將把潛在的外國收益以較低的利率遣返回美國。
  • 更新和實施規則以平衡美國總部公司及其外國相關公司的競爭環境。
  • 資本投資 (“Expensing” on capital),鼓勵小企業支出。