As we enter the new year, it’s essential for controllers and CFOs to stay informed of the latest tax changes and how they will impact their businesses. With the new year come new tax laws, regulations, and policies that finance executives must be aware of to ensure they are staying compliant and taking advantage of all tax benefits available to them. Here are some of the most significant tax changes that you be should be aware of in 2023.
1) Increase in Corporate Tax Rates
One of the most significant tax changes for 2023 is an increase in the corporate tax rate. The new rate is set to rise from 21% to 25%, meaning that businesses will have to pay more in taxes. CFOs should be prepared for this change and take steps to minimize their tax liability by taking advantage of available tax breaks and deductions.
2) Changes to International Taxation
Another significant change for 2023 is an overhaul of the international tax system. The new system will include a minimum tax on foreign income and a limit on the ability to defer foreign income. CFOs should stay informed of these changes and work with their tax advisors to ensure they are in compliance with the new rules.
3) Expansion of the Child Tax Credit
The Child Tax Credit has been expanded for 2023, offering additional tax relief to families with children. CFOs should be aware of this change and inform their employees of the new credit and how it can benefit them.
4) Changes to Depreciation Rules
There have also been changes to the 2023 rules regarding depreciation. CFOs should be aware of these changes and work with their tax advisors to determine how they will impact their businesses.
5) Increased Focus on Tax Compliance
Finally, there has been a significant increase in the focus on tax compliance in 2023. The IRS has stepped up its enforcement efforts and is cracking down on tax evasion and non-compliance. CFOs should take this as a reminder to stay on top of their tax obligations and ensure they are in compliance with all tax laws and regulations.
Stay Ahead of 2023 Tax Changes
In conclusion, the 2023 tax season brings a host of changes that controllers must be aware of to stay compliant and take advantage of all tax benefits available to them. From an increase in corporate tax rates to changes in international taxation, controllers must stay informed and work closely with their tax advisors to ensure they are in compliance with all tax laws and regulations.
As with anything in business, flexibility is key. Staying informed of tax changes that affect your company will improve your efficiency, reduce your risk, and provide a path to flourishing in the coming year. Join the growing Controllers Council community to stay informed on tax changes and discuss with your peers.