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Many businesses are upset after a move by New York City’s move to tax more of corporations’ offshore income that could cost companies millions of dollars a year, according to Bloomberg.

New York City’s new tax grab would tax foreign income in corporate tax calculations, making New York City’s tax on offshore income far higher than even New York State taxes. The move by city government could cost companies like Pfizer and Goldman Sachs millions of dollars a year.

The new taxes are tied to the 2017 federal tax laws that created a levy on global intangible low-taxed income or GILTI. GILTI was intended to stop multinational corporations from shifting profits to offshore accounts through intangible assets like valuable intellectual property.

Businesses are upset because New York City is requiring that companies include the full GILTI amount in calculating city taxes while the state of New York offers a 95% exemption on that income.

Mark Jaffe, president and chief executive officer of the Greater New York Chamber of Commerce, said, “It’s always confusing when the city makes a different law than the state. We think that the city should model the state for a number of good reasons, but they’re on a different wavelength.”

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