New GILTI High Tax-Exclusion Final Regulations: Tested Units, Controlled CFC Groups, and Retroactive Application
Note: CLE credit is not offered on this program
Recording of a 110-minute CPE webinar with Q&A
This webinar 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) released in July 2020. Our panel of international tax experts will explain how the final regulations change the originally proposed regulations issued in 2019, and how the newly issued proposed regulations (released with the July 2020 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 prior to 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?
Alison N. Dougherty, J.D., LL.M., CPA
Ms. Dougherty specializes in U.S. international tax reporting, compliance, consulting, planning, and structuring as a... | Read More
Ms. Dougherty specializes in U.S. international tax reporting, compliance, consulting, planning, and structuring as a significant contributor to the firm’s international tax practice. She has extensive experience assisting clients with U.S. tax reporting and compliance for offshore assets and foreign accounts. Ms. Dougherty provides outbound U.S. international tax guidance to U.S. individuals and businesses with activities in other countries. She also provides inbound U.S. international tax guidance to nonresident individuals and businesses with activities in the U.S. Ms. Dougherty has counseled U.S. taxpayers regarding the outbound formation, capitalization, acquisition, operation, reorganization, and liquidation of foreign companies. She has significant experience with U.S. federal nonresident tax withholding, foreign partner tax withholding, and FIRPTA withholding. She works closely with nonresident individuals and businesses regarding inbound U.S. real property investment. Additionally, Ms. Dougherty has assisted U.S. taxpayers with IRS amnesty program disclosures of offshore assets and foreign accounts.Close
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
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