OMB Receives Proposed Foreign Tax Credit Regs for Review
Posted on Nov 7, 2018 in International Tax
The Office of Management and Budget (OMB) received proposed foreign tax regulations for review on November 7. The regulations include guidance on allocation of expenses to the section 951A Global Intangible Low-Taxed Income (GILTI) basket for purposes of determining the foreign tax credit limitation, as well as transition rules for excess foreign tax credit carryforwards. The...
Treasury and IRS Issue Proposed Regulations for Section 956
Posted on Oct 31, 2018 in International Tax
Treasury and the IRS have issued proposed regulations (REG-114540-18) that would reduce the inclusion determined under section 956 for certain domestic corporations that own stock in controlled foreign corporations. The proposed regulations are intended to harmonize the application of section 956 and the participation exemption system (section 245A) enacted under the Tax Cuts and...
OIRA Receives Proposed Section 163(j) Regulations for Review
Posted on Oct 26, 2018 in Individual Taxation, International Tax, News, Pass-through Taxation, Tax Accounting
The Office of Information and Regulatory Affairs (OIRA) received draft proposed regulations under section 163(j), addressing the limitation on business interest deductions, on October 25, according to the Office of Management and Budget’s website. As amended by the Tax Cuts and Jobs Act (TCJA), section 163(j) generally limits business interest expense deductions to the sum of business...
Proposed Foreign Tax Credit and Section 163(j) Regulations to be sent to OIRA
Posted on Oct 19, 2018 in International Tax
On October 18, 2018, Lafayette G. Harter III, the deputy assistant secretary for international tax affairs for the Department of Treasury, announced that the proposed regulations focusing on foreign tax credits under section 904 are likely to be sent to the Office of Information and Regulatory Affairs (OIRA) for review on October 19 or the following week. Harter also announced that...
Treasury Confirms Issuance of Transition Tax Regulations by the End of the Year
Posted on Oct 11, 2018 in International Tax
Brenda Zendt, special adviser to the Treasury Office of International Tax Counsel, corroborated a prior report that the Treasury Department intends to issue final Section 965 regulations by the end of 2018. Treasury deputy assistant secretary for international tax affairs, Chip Harter, previously commented on the deadline while discussing Treasury’s goal to issue proposed regulations,...
Treasury Official Clarifies Section 199A De Minimis Rules
Posted on Oct 10, 2018 in International Tax
The proposed regulations under new section 199A, which allows a 20% deduction for qualifying business owners, provide a de minimis rule which generally provides that a business will not be treated as a disqualified “specified service trade or business” if less than 5% or 10% of the gross receipts (depending on the amount of the business’s gross receipts) are attributable to certain...
IRS To Extend Transfer Agreement Deadline
Posted on Oct 10, 2018 in International Tax
Section 965, enacted by the TCJA, imposes a one-time transition tax on certain U.S. shareholders. The proposed regulations under section 965 require corporations that have elected to make transition tax payments pursuant to an eight-year installment plan and have transferred substantially all of their assets to another corporation file certain transfer agreements by October 9. At the...
Proposed GILTI Regulations to Be Published in Federal Register
Posted on Oct 8, 2018 in International Tax
The proposed regulations for the global intangible low-taxed income (“GILTI”) under section 951A (REG-104390-18) are set to be published in the Federal Register on October 10. Released on September 13, the regulations set forth new reporting requirements and rules for calculating GILTI inclusions. Public comments on the proposed GILTI regulations must be received by December 9. 2018,...
IRS Releases Additional Guidance on Section 965
Posted on Oct 1, 2018 in International Tax, News
The Treasury and the IRS have published Notice 2018-78, containing additional guidance on the proposed regulations for Section 965, which were published on August 9, 2018. The Notice provides that the final regulations (i) will not require taxpayers to make a binding basis election until at least 90 days after finalization of the proposed regulations; (ii) will permit all members of...
Proposed GILTI Regulations Released
Posted on Sep 13, 2018 in International Tax, News
The IRS has released proposed regulations on global intangible low-tax income (GILTI) under section 951A, a provision added by the Tax Cuts and Jobs Act. The proposed regulations set forth rules for calculating the GILTI inclusion and new reporting requirements, but do not address foreign tax credit rules, which will be addressed separately in the future. Public comments on the...
IRS Releases Draft Forms for Transition Tax and BEAT Reporting
Posted on Sep 10, 2018 in International Tax, News
The IRS released draft forms for reporting a taxpayer’s section 965 transition tax and section 59A base erosion and anti-abuse tax liabilities. The forms, titled Form 965 (“Inclusion of Deferred Foreign Income Upon Transition to Participation Exemption System”) and Form 8991 (“Tax on Base Erosion Payments of Taxpayers With Substantial Gross Receipts”), respectively, can be found on the...
GILTI Regulations Reviewed by OMB
Posted on Sep 10, 2018 in International Tax, News
The Office of Management and Budget (OMB) has completed its review of global intangible low-tax income (“GILTI”) proposed regulations. Section 951A, enacted by the Tax Cuts and Jobs Act, generally taxes income earned by controlled foreign corporations at a reduced rate. Read more: OMB Completes Review of Regs on GILTI
Proposed GILTI Tax Regulations are Currently Under Review by the OMB
Posted on Aug 23, 2018 in International Tax, News
According to the Office of Budget and Management (OMB) website, the proposed regulations on section 951A were received on August 22, 2018 and are currently under review. Section 951A, a provision added by the Tax Cuts and Jobs Act, addresses the inclusion of global intangible low-taxed income by United States shareholders. Notice on OMB Website: Pending EO 12866 Regulatory...
Federal Register Publishes Proposed Transition Tax Regulations
Posted on Aug 9, 2018 in International Tax, News
On August 9, 2018, the Federal Register published the Treasury and the IRS’s proposed transition tax regulations. While the IRS had made an initial draft of the proposed regulations available for review, publication in the Federal Register begins the comment period for the proposed regulations. Comments on the proposed regulations must be received by October 9, 2018. Read More: Federal...
AICPA and CIMA US Tax Reform Conference 2018
Posted on Aug 7, 2018 in International Tax
Eversheds Sutherland is the proud lead sponsor of the Association of International Certified Professional Accountants (AICPA) and the Chartered Institute of Management Accountants (CIMA) US Tax Reform Conference 2018 on September 17, 2018, at the Jumeirah Carlton Tower Hotel in London, United Kingdom. The US and International Eversheds Sutherland Tax team will be chairing the event and...