Share repurchase tax: Q&As
Hot Topic | August 2023
We address accounting questions related to the new 1% excise tax on repurchases of an entity's own shares.
The Inflation Reduction Act (IRA) was signed into law in August 2022. Among other things, it imposes a 1% excise tax on net share repurchases in a tax year that are made by certain publicly traded corporations. We explain the accounting treatment for the new excise tax using Q&As reflecting issues encountered in practice since the IRA was signed into law.
Applicability
- Publicly-traded corporations that are subject to the new 1% excise tax on net repurchases of their own shares
Key Impacts:
Report contents
- Overview
- Questions and answers
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Share repurchase tax
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