This article summarizes the proposed changes regarding international 税 provisions of the 税 Cuts and Jobs Act (TCJA). The Build Back Better proposal will mainly affect the following areas:
Changes to the GILTI regime have been addressed in the separate article.
New limitations for foreign 税 credit carryovers and carrybacks would apply. Also, the foreign branch income category would be repealed. Perhaps the most significant change would be the determination of the foreign 税 credits on a country-by-country basis. This would be a significant limitation affecting foreign 税 credits.
Section 250 allows a domestic corporation that has FDII to deduct a specific percentage of the excess of the corporation’s income from export sales over a fixed return on tangible depreciable assets. FDII规则与GILTI规则协同运作.
New rules would eliminate or reduce deemed tangible income return (DTIR) and qualified business asset investment (QBAI) from the FDII calculation. Eliminating or reducing QBAI discourages 税payers from owning depreciable assets abroad. The proposal also adds a new element in FDII calculation, 国内创新收入, 这是为了奖励R&D在美国的努力.S. Many details about 国内创新收入 are still unknown, but the newly created term could have a great impact on the FDII calculation.
BEAT是根据TCJA制定的最低税, mainly applicable to large multinational corporations, with a purpose to prevent generating 税 benefits in connection with shifting income from the U.S. 到国外. The new international 税 proposals would modify BEAT 税 with a SHIELD (stopping harmful inversions and ending low-税 developments). Even though sufficient detail is not currently available to evaluate 税 implications on specific 税payers, it is likely that the changes will be significant and will need to be addressed at the appropriate time.
Schneider Downs 税 professionals will continue to monitor these and future developments. 如有任何问题，请与施耐德唐斯联系.
