Are you a corporate or individual shareholder of a controlled foreign corporation (CFC)? If so, it is imperative that you discuss changes to your tax plan with an experienced foreign tax attorney as soon as possible. Schedule a consultation with the leading GILTI planning attorneys at SF Tax Counsel right away.<\/p>\n\n\n\n
The 2017 Tax Cuts and Jobs Act included a new\nGlobal Intangible Low-Taxed Income (“GILTI”) provision that aims to\ntax the intangible property of CFCs. However, due to the specific wording of\nthe legislation, most CFCs will likely experience a substantial increase in tax\nliability on their global income.<\/p>\n\n\n\n
GILTI exists to deter U.S. taxpayers from\nmoving high-return intangibles offshore to avoid U.S. taxes. The law assigns a\n10 percent return rate on a CFC\u2019s fixed assets and any additional income over\n10 percent is considered to be intangible GILTI. U.S. CFC shareholders will\nthen include their pro rata GILTI share as an inclusion for the current year.<\/p>\n\n\n\n
U.S. corporate shareholders of CFCs may claim\na 50 percent deduction against any GILTI inclusion and the use of foreign tax\ncredits paid by the CFC to reduce U.S. federal income taxes. Individual CFC\nshareholders may be able to utilize a Section 962 election to reduce tax\nliability on GILTI. <\/p>\n\n\n\n
The new GILTI provision applies to tax years\nstarting after December 31, 2017. Both corporate and individual CFC\nshareholders should begin planning to reduce GILTI inclusion taxes as soon as\npossible. Without proper planning, many CFC shareholders may fail to comply\nwith the new provisions or may be surprised by a significant increase in taxes\non foreign income. <\/p>\n\n\n\n
At the law firm of Diosdi & Liu, LLP, our experienced tax lawyers understand how the new tax reforms will affect CFC shareholders, and we can help enact a plan to minimize your tax liability whenever possible. To set up an appointment, call 833.829.4376<\/a> or contact us online<\/a>. <\/p>\n","protected":false},"excerpt":{"rendered":" Are you a corporate or individual shareholder of a controlled foreign corporation (CFC)? If so, it is imperative that you discuss changes to your tax plan with an experienced foreign tax attorney as soon as possible. Schedule a consultation with the leading GILTI planning attorneys at SF Tax Counsel right away. What is GILTI? The […]<\/p>\n","protected":false},"author":5,"featured_media":297,"parent":10,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"templates\/secondary-template.php","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"_links":{"self":[{"href":"https:\/\/sftaxcounsel.com\/wp-json\/wp\/v2\/pages\/296"}],"collection":[{"href":"https:\/\/sftaxcounsel.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/sftaxcounsel.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/sftaxcounsel.com\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/sftaxcounsel.com\/wp-json\/wp\/v2\/comments?post=296"}],"version-history":[{"count":4,"href":"https:\/\/sftaxcounsel.com\/wp-json\/wp\/v2\/pages\/296\/revisions"}],"predecessor-version":[{"id":5347,"href":"https:\/\/sftaxcounsel.com\/wp-json\/wp\/v2\/pages\/296\/revisions\/5347"}],"up":[{"embeddable":true,"href":"https:\/\/sftaxcounsel.com\/wp-json\/wp\/v2\/pages\/10"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sftaxcounsel.com\/wp-json\/wp\/v2\/media\/297"}],"wp:attachment":[{"href":"https:\/\/sftaxcounsel.com\/wp-json\/wp\/v2\/media?parent=296"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}