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New tax rules could mean a US exodus for crypto companies

Published 04/10/2023, 07:29 PM
Updated 04/10/2023, 09:00 PM

The new R&D law has overly broad language that states “any and all” software development must be amortized over five years if the development took place in the United States, or over 15 years if the work was done overseas. The change doesn’t sound so bad on its surface; some argue it might even create more tech jobs in the U.S.

But that isn’t how it will play out. Many countries have better R&D credits than the U.S. Much of U.S. software development will shift to countries such as the United Kingdom, where the rules are simpler and more lucrative. For tax-smart companies, U.S. entities will just be for marketing and sales.

Cryptocurrency tax rates in select countries as of 2023
Crystal Stranger is a federally-licensed tax EA and the chief operating officer at GBS Tax. She worked previously as a software developer in San Francisco.

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Latest comments

The US is openly hostile to crypto that's pretty obvious
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