Time to Go to the US!!!

Fed has been gradually raising interest rates and unwinding its balance sheet from the record $4.5 trillion level, which will put upward pressure on sovereign debt securities and mortgage-backed securities. Yet the impact is expected to be small and well-controlled. Articulated goal of reducing balance sheet will reflect in limited amount of monthly securities roll off in a measured and orderly pace. OppenheimerFunds estimates that Fed will prevent a $430 billion roll off over 5 years, which means enterprises can still enjoy accommodative monetary policy to nurture their business.

Source: Business Insider

Time to Go to the US!!!

Easy financial conditions have been supporting the pickup of global growth since mid-2016. Financial conditions in US have loosed to the easiest levels in mid-2017 since 2014, largely due to tighter credit spreads. The situation won’t be changed in short-term according to National Financial Conditions Index (NFCI), the positive values of which have been historically associated with tighter-than-average financial conditions. NFCI has remained negative since 2012. Fed will avoid a sharp change to prevent any artificial market turmoil. 

Source: Federal Reserve Bank of Chicago

Time to Go to the US!!!

The US government enters into bilateral income tax treaties with numerous countries in order to encourage international trade and investment, promote cross-border cooperation, stimulate information exchange and reduce double or excessive taxation. French enterprises in the states may apply reduced rates or be exempted from the requirement to withhold tax at source. Tax rate imposed on dividends paid by US corporations in general, dividends qualifying for direct dividend rate and interest paid by US obligors in general can be reduced from 30% to 15%, 5% and 0% respectively.

Bilateral Income Tax Treaties

Time to Go to the US!!!

Also following 2017 Tax Reform, the cost of qualifying property of no more than $500,000 per piece can be deducted for tax purpose. In addition, additional first-year depreciation deduction is allowed equal to 50% of the adjusted basis of qualified property. Qualifying property is also extended to property already put in service. The ability to depreciate assets upfront provides strong incentive for fixed asset investment.

Bonus Depreciation Rule