It has been over 30 years since the last significant US tax reform, i.e. the Tax Reform Act of 1986. Up to this day, there has been widespread consensus that the current US business tax system has become increasingly out of step to boost the US’s economy, with a number of loopholes which could be used for tax avoidance. Against this backdrop, the new US Administrations seizes the opportunity to conduct the overhaul of the current US tax law, with the aim to rebuilt attractiveness and competitiveness of the US in the global market.
On 15 December 2017, the House and Senate Conference Committee reached an agreement on differences in the House and Senate tax reform bills, and released an updated version for voting purpose (the Conference Agreement). On 20 December 2017, the Senate and House respectively passed the final version of the Conference Agreement. Only 2 days later, on 22 December 2017, the US president signed the legislation into law (the signing), which will take effect from 1 January 2018. The signing indicates that this high-profile US tax reform has officially set off from now. Considering its international influence, the spillover effect of the US tax reform this time is notable and will have a significant impact on domestic economy of the US, and even the economy of the world including China.