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Global Entity Structuring After OBBBA: New Considerations for U.S. Taxpayers Doing Business Abroad

U.S. or Foreign, Corporation or Pass-Through, FTCs, Treaty Provisions and Relief Under 962

Note: CLE credit is not offered on this program

A live 110-minute CPE webinar with interactive Q&A

This program is included with the Strafford CPE Pass. Click for more information.
This program is included with the Strafford CPE+ Pass. Click for more information.
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Monday, October 27, 2025

1:00pm-2:50pm EDT, 10:00am-11:50am PDT

Early Registration Discount Deadline, Friday, October 3, 2025

or call 1-800-926-7926
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This course will weigh the pros and cons of holding structure choices for foreign investments made by U.S. taxpayers. Our panel will explore the tax implications of entity choice and new considerations in light of the One Big Beautiful Bill Act (OBBBA).

Description

U.S. taxpayers are increasingly engaging in activities abroad. The most obvious considerations are whether to form the entity in the U.S. or another country and what type of entity to choose. Adding to the complexity of the decision are the numerous types of relief available for taxing foreign income in the U.S.

The OBBBA has modified and renamed GILTI to net controlled foreign corporation tested income (NCTI) and eliminated the qualified business asset investment (QBAI) deduction that reduced the GILTI inclusion. FDII, too, has been modified and renamed, now referenced as FDDEI, or foreign-derived deduction eligible income. To ease taxation, formerly, Section 250 provided tax relief to domestic corporations with a 37.5% tax deduction for FDII and a 50% deduction for GILTI. The corresponding Section 250 deductions for NCTI and FDDEI will be 40% and 33.34% respectively. These changes, along with the reduction of the Section 960(d) rate for foreign tax credits from 20% to 10%, create effective tax rates of 12.6% for NCTI and approximately 14% for FDDEI. Weighing the taxation on worldwide income against the benefits and burdens of being a foreign entity is a complex process.

Holding the investment individually seems to be a good idea when coupled with the 962 election to take advantage of the lower corporate rates. However, individuals aren't eligible for Section 959 relief from the second level of taxation when assets are distributed.

Listen as our panel of experts explains U.S. taxation of foreign income and the impact of OBBBA, including GILTI/NCTI, Subpart F, and PFIC, and relief available by way of Section 962, foreign tax credits, and international treaties to help advisers make the best entity choice for businesses with earnings outside the U.S.

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Outline

  1. U.S. taxpayers defined
  2. Foreign entities
    1. Default classifications and electing out
    2. Subpart F
    3. PFICs
    4. GILTI/NCTI
  3. The impact of OBBBA on global structuring
  4. Treaty provisions
  5. U.S. business entities
    1. PTEs and C corporations
    2. Section 959 relief from double taxation
  6. Holding as individual
    1. Sec 962 election to be taxed as corporation
    2. Other considerations
  7. Foreign reporting requirements

Benefits

The panel will review these and other critical issues:

  • New considerations after the OBBBA for global entities
  • When to elect to be taxed at the corporate rate under Section 962
  • What treaty relief is available for double taxation
  • When non-tax considerations outweigh tax benefits
  • How foreign tax credits impact the choice of entity

Faculty

McCormick, Patrick
Patrick J. McCormick, J.D., LL.M.
Partner
Rimon Law

Mr. McCormick specializes in the areas of international taxation and multinational trusts and estates. He has...  |  Read More

McGowin, Alex
Alex McGowin, CPA
International Tax Accountant
McGowin Tax

Mr. McGowin is a trusted advisor to multinational individuals and businesses seeking to optimize their global tax...  |  Read More

Attend on October 27

Early Discount (through 10/03/25)

CPE credit processing is available for an additional fee of $39.
CPE processing must be ordered prior to the event. See NASBA details.

Cannot Attend October 27?

Early Discount (through 10/03/25)

CPE credit is not available on downloads.

CPE On-Demand

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