GILTI High-Tax Exclusion Final Regulations: Tested Units, Controlled CFC Groups, and Retroactive Application
Note: CLE credit is not offered on this program
A live 110-minute CPE webinar with interactive Q&A
This course will provide CFC shareholders and tax professionals with a comprehensive understanding of the final global intangible low-taxed income (GILTI) High-Foreign-Tax Exclusion Regulations (T.D. 9902). Our panel of international tax experts will explain how the final regulations change the originally proposed regulations and how the newly issued proposed regulations (released with the final regulations) would combine the GILTI and Subpart F High-Foreign-Tax Exceptions into a single, unitary election.
- Background and tax policies underlying the application of the longstanding Subpart F Income High-Foreign Tax Exception, and the new GILTI High-Foreign Tax Exclusion
- Overview of the 2019 proposed regulations
- Final July 2020 regulations
- Modifications from the 2019 proposed regulations
- Calculations and examples
- Retroactive elections
- July 2020 proposed regulations
- Planning opportunities
- Avoiding tax pitfalls
The panel will review these and other important issues:
- How to calculate whether income is subject to a high effective foreign tax rate
- Understanding the ramifications of the "consistency" requirement
- When is it best to forgo the election to exclude high-taxed income?
- What savings opportunities exist before the effective date of the proposed regulations?
- What is a testing unit?
- Which taxpayers should apply the regulations retroactively?
- How does the use of foreign tax credits impact the decision to elect the exclusion?
- How is the Subpart F Income High-Tax Exception impacted by these final regulations?
Pamela A. Fuller, Esq.
Counsel (Tax, M&A, International)
Zahn Law Group
Ms. Fuller’s practice has a triple focus: tax planning, tax controversies, and tax compliance. She advises a wide... | Read More
Ms. Fuller’s practice has a triple focus: tax planning, tax controversies, and tax compliance. She advises a wide range of clients–including private and public companies, joint ventures, funds, high-net-worth individuals, C-Suite executives, and government entities–on transactional, investment, and supply-chain strategies to achieve optimal tax and business results. Ms. Fuller advises clients on both purely domestic transactions and transnational ones, helping both U.S.-based companies and foreign companies (and their executives) achieve the best possible results from a tax and business perspective. Ms. Fuller is Chair of the ABA’s Tax Section’s Tax Policy Committee, and also Co-Chair of the International Tax Committee of the ABA’s worldwide International Law Section. She frequently speaks at law conferences, and publishes papers on international tax topics in peer-reviewed law journals.Close
Senior Director, International M&A Tax Services
Mr. Chesman has broad experience in federal, state, and international taxation, including consulting, compliance, and... | Read More
Mr. Chesman has broad experience in federal, state, and international taxation, including consulting, compliance, and audit, with particular emphasis on structuring domestic and cross-border mergers and acquisitions, spin-off transactions, post-merger integrations, debt restructurings, bankruptcy workouts, and application of the consolidated return regulations.Close
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