BEAT (Base Erosion and Anti-Abuse Tax)

The Base Erosion and Anti-Abuse Tax (BEAT) is a U.S. tax designed to prevent large multinational corporations from reducing their tax obligations by shifting profits to offshore affiliates. Essentially, it imposes a minimum tax on companies that make significant payments to foreign entities, like interest, royalties, or management fees, which could reduce their taxable income in the U.S. The goal is to ensure that these companies pay their fair share of taxes, protecting the U.S. tax base from erosion due to profit shifting strategies.