Planning for the new medical device excise tax
A new 2.3% excise tax on medical device sales, enacted as part of Health Care Reform, will apply to sales occurring after 31 December 2012. This new tax is anticipated to cost the industry approximately $2.7 billion annually. Implementation of this new tax likely will increase the complexity of the tax environment for medical device manufacturers.
Medical device manufacturers will need to create new procedures for complying with the tax, and in doing so will need to work through the complexities of the exemptions and the rules. In addition, the structure of the tax affects supply chains, imports, leases and rentals differently. By understanding the growing list of complications, organizations will be able to correctly identify, calculate, and potentially to mitigate, the impact of this tax.
Please join the Ernst & Young LLP medical device team for an overview of this new tax, a discussion of possible topics to watch for in published guidance expected later this year, a legislative update and some thoughts on what companies can be doing now to address how this tax will impact your organization. During this live, interactive webcast, you will have the opportunity to ask questions through the website, and the panelists will answer as many of your questions as time permits.
This program will be of interest to CFOs, corporate controllers, directors of finance, tax directors, people responsible for tax compliance at medical device manufacturers and related companies. We hope you will be able to join us.
Christopher J. Ohmes, Ernst & Young LLP, National Tax Federal Tax Services, Washington, D.C.
Adrienne Delorme, Ernst & Young LLP, National Tax Federal Tax Services, Washington, D.C.
Michael Udell, Ernst & Young LLP, Quantitative Economics and Statistics, Washington, D.C.
Francis Grab, Ernst & Young LLP, Washington Council Ernst & Young, Washington, D.C.