International Tax Primer Andrew D. Oppenheimer, Esq. October 31, 2017
|
|
- Dwight Bond
- 6 years ago
- Views:
Transcription
1 International Tax Primer Andrew D. Oppenheimer, Esq. October 31, 2017
2 Agenda International tax concepts Taxation of foreign earnings Sourcing of income and expenses Foreign tax credits Subpart F income Transfer pricing Recent developments Reform proposals
3 International tax concepts
4 International tax concepts Worldwide An approach to taxation used by countries like the US, that taxes its citizens, resident aliens and domestic corporations on their worldwide income This approach creates risk of double taxation on the same item of income (i.e., by country of residence and by country of source) In the US, this double taxation can be mitigated in the following ways: Foreign tax credit ( FTC ) with respect to certain foreign taxes, which is elective Deduction for foreign taxes paid Tax treaties Nonresidents and foreign corporations are generally subject to tax by a country using worldwide taxation only on income from sources in that country Territorial An alternative approach that taxes only income earned in that country
5 International tax concepts Taxation of US and non-us persons US persons: US taxes worldwide income of US persons To prevent double taxation of foreign source income, may annually elect to claim a credit for foreign income taxes If no election, foreign taxes are deducted Credit is limited to portion of taxpayer s pre-credit US tax attributable to foreign source income Non-US persons: US uses a two-pronged system to tax US source income of foreign persons US source investment-type income is subject to gross basis withholding tax (30% subject to reduction by treaty) Net amount of income effectively connected with a US trade or business is subject to tax at the regular graduated rates
6 International tax concepts Taxation of US-owned foreign corporations Deferral Foreign subsidiary is not includible in US consolidated return US generally does NOT tax a foreign subsidiary s undistributed foreign source income Result Defer residual US tax until sub pays a dividend Policy Help US companies compete outside the US Anti-deferral Deny deferral to tainted foreign earnings Simultaneously allow deferral for active foreign business profits Specific regimes Subpart F (enacted in 1962) PFIC (enacted in 1986)
7 International tax concepts What is a PFIC and why do we care? Passive Foreign Investment Company ( PFIC ) (a) A foreign corporation is categorized as a PFIC if either: 75% or more of its gross income is from passive income, or 50% or more of the value of its assets either produce or are held for the production of passive income. Adverse tax treatment Generally, US shareholders of PFICs are subject to tax and interest charges on any excess distributions from a PFIC, including any gain on the disposition of PFIC stock (unless an election is made to include the income annually). An investor could be exposed to potentially severe tax liabilities by not identifying the PFIC status of the foreign equities held in a portfolio.
8 International tax concepts What is a CFC and why do we care? Controlled Foreign Corporations ( CFCs ) - 957(a) Any foreign corporation if more than 50% of 1) the total combined voting power of all classes of stock of such corporation entitled to vote, OR 2) the total value of the stock of such corporation, is owned (within the meaning of 958(a)), or is considered as owned by applying the rules of ownership of 958(b), by US shareholders on any day during the taxable year US Shareholder A US person who owns, or is considered as owning by applying the constructive ownership rules of 958(b), 10% or more of the total combined voting power of all classes of stock entitled to vote of such foreign corporation This US person could be subject to deemed income inclusions under Subpart F with respect to a CFC (Subpart F is an exception to deferral)
9 International tax concepts E&P and tax pools: Important tax attributes used in FTC planning Earnings and profits ( E&P ) A measure of the income/dividend capacity of a foreign corporation Based upon domestic concepts It could be a deficit Book earnings of the foreign corporation plus/minus adjustments Tracked separately for each foreign corporation Maintained in the foreign corporation s functional currency Tax pools A measure of the potentially creditable foreign taxes paid by the foreign corporation attributable to its E&P
10 International tax concepts USP USS Foreign Holdco Foreign Holdco Foreign Holdco Foreign Holdco Foreign Opco Foreign Holdco Foreign Opco Foreign Opco Foreign Opco
11 International tax concepts Importance of a foreign corporation s E&P to US shareholders CFCs Subpart F income is limited to current E&P, and reduced by a qualified deficit in E&P Section 956 inclusion is limited to applicable earnings Gain on sale of CFC stock is dividend to extent of E&P Annual reporting of current and accumulated E&P PFIC E&P is used to determine annual inclusion (if elected) Foreign corporations in general E&P is used to determine if a distribution is a dividend E&P is used to compute deemed paid FTCs E&P is used in applying look-through rules for basketing dividends Deemed dividend from inbound subsidiary liquidation or inbound reorganization is based on all E&P amount Interest expense apportionment Basis in stock of CFC is increased by E&P
12 International tax concepts: Sourcing
13 Sourcing of income and expenses Why is sourcing important? Income sourcing and expense allocation are important for purposes of determining a taxpayer s ability to use FTCs Note: does not change total taxable income of US person Sourcing rules determine taxable income of foreign persons Total taxable income US source income Foreign source income
14 Sourcing of income and expenses Overview of sourcing process Goal: determine geographic origin of income Gross income Step 1: determine statutory category (interest, rents, dividends, etc.) Step 2: apply category-specific source rule Deductions Step 1: allocate to related class of gross income Step 2: apportion between US and foreign source income based on factual relationship of deductions to gross income
15 Sourcing of income and expenses General income sourcing rules Interest sourced to residence/place of incorporation of payor Dividends sourced to place of incorporation of payor Rents/Royalties sourced to location of property/permitted place of use Personal Services generally place of performance Sale of Real Property sourced to location of property Sale of Personal Property generally sourced to location of property Inventory sourced to place of sale where title passes to buyer, generally. Also consider special rules (section 863(b) sales 50/50)
16 Sourcing of income and expenses Expense apportionment rules Regulations under 861 Interest expense (special rules due to fungibility) R&D expenditures State income taxes Net operating losses Stewardship expenses Losses from sale of property Legal and accounting expenses Charitable contributions
17 International tax concepts: Foreign tax credit regime
18 Foreign tax credit regime Credit vs. deduction of certain foreign taxes General rules Foreign taxes are deductible business expenditures Foreign tax credit regime is elective FTC is generally preferable to a deduction FTC reduces US income tax liability dollar-for-dollar A deduction, however, may be preferable in an NOL context Consider the FTC limitation ( 904) It limits the FTC to the US tax on foreign source taxable income How might you maximize the FTC? Maximize foreign source income and minimize foreign source deductions Remember that not all E&P and related tax pools are the same
19 Foreign tax credit regime Types of FTC Direct credit Available under 901 (and 903) A credit for taxes imposed on and paid by the US taxpayer (e.g., withholding tax or foreign taxes paid by the US for operations in a foreign branch) Indirect (deemed paid) credit Available under 902 To US corporate shareholders who directly own 10% of voting stock For taxes imposed on a foreign subsidiaries within the Qualified Group Available under 960 To US corporate shareholders that have an income inclusion under 951(a)(1) (i.e., subpart F income or a 956 inclusion from a CFC)
20 Foreign tax credit regime Types of FTC (cont.) Section 901 Taxes paid on income of foreign branch or partnership Section 903 Taxes withheld by foreign payers of dividends, interest or royalties Sections 902 and 960 Taxes of foreign subs that are deemed paid upon receipt of dividend USP USP USP Foreign branch Income Foreign payers Dividend Interest Royalties Foreign subsidiary Dividends Subpart F inclusions
21 Foreign tax credit regime Example of section 901 direct FTC US corporation Foreign branch Foreign Net Income (before reduction for taxes) $1,000 Foreign Tax Paid $250 If US corporation earns income from foreign operations through a branch, US corporation is treated as paying the foreign tax directly and may, subject to the FTC limitation rules, receive a direct FTC (i.e., a 901 credit) US Corporation includes $1,000 in its income and claims a FTC of $250
22 Foreign tax credit regime Section 901 example: Credit vs. other methods compared Example: USCo operates a foreign branch that has $100 of foreign earnings. Foreign tax rate is 20%, US rate is 35% Methods of mitigating double taxation Foreign tax + US tax = Effective tax rate None $20 $35 55% Deduction for foreign tax $20 $28 48% Credit for foreign tax $20 $15 35% Exemption for foreign income $20 $0 20%
23 Foreign tax credit regime Section 902/960 indirect (deemed paid) FTC 1 st tier subsidiaries Also known as the deemed paid credit The US corporation is deemed to have paid, for purposes of 901, certain foreign taxes paid by foreign corporations if it satisfies the 10% direct ownership threshold Available when foreign subsidiary makes actual or deemed cash and non-cash dividends (i.e., distributions treated as dividends under 301(c)(1)) Available when there is an income inclusion under either the subpart F rules or as a 956 inclusion from a CFC
24 Foreign tax credit regime Section 902/960 indirect (deemed paid) FTC - Lower tier subsidiaries US corporation CFC Dividend Dividend Qualification requirements Minimum 10% direct ownership at each level Minimum 5% indirect ownership through chain Dividend distributions up to US parent Number of qualifying tiers Can look down to the 6th tier (but only if CFCs) What if the taxes reside below the 6th tier? Tracing foreign taxes to dividends CFC
25 Foreign tax credit regime Section 902/960 indirect (deemed paid) FTC - Example US corporation CFC Foreign Income $100 Foreign Tax $30 Foreign E&P $70 $70 Dividend If US corporation receives a distribution from CFC who earned the income and paid foreign tax, US corporation has not directly paid any foreign taxes and thus cannot receive a 901 credit However, under 902, US corporation will treat the $30 of taxes paid by CFC as deemed paid by US corporation and thus creditable US corporation will include $100 in gross income ($70 dividend plus $30 78 gross-up) and may be able to claim a FTC of $30 against US tax due of $35 ($100 x 35%)
26 Foreign tax credit regime Foreign tax credit limitation - Section 904 Purpose Limit credit to US tax on foreign-source income Credit is not intended to offset US tax on US-source income Foreign tax credit limitation Pre-credit = US tax x Foreign-source taxable income Total taxable income How to increase limitation? Gross income Deductions Maximize foreign-source income for US tax purposes (e.g., 863(b) sales) Maximize US-source deductions for US tax purposes (e.g., 861 allocation)
27 Foreign tax credit regime Separate basket foreign tax credit limitations Section 904(d) General rule Separate limitations applied to: Passive category income General category income How separate basket limitations work Allocate total foreign source income and total foreign taxes between two baskets Compute separate limitation and separate credit for each basket Total credit = sum of credits from each basket US source income Total taxable income General category income Foreign source income Passive category income
28 International tax concepts: Subpart F
29 Subpart F income The problem with portable income Perceived abuse: Deferral provides a tax incentive to channel investment income, inventory trading profits, and other portable income through a foreign corporation based in a low-tax foreign jurisdiction Income earned abroad subject to lower tax rates that could have been earned in the US Without Subpart F, no US tax on income until repatriated by a CFC due to the general rule of deferral
30 Subpart F income Example of perceived abuse Assume: German CFC manufactures goods for sale by US corporation in the US market. Cayman CFC has no substance (no employees, no office, etc.) Sells 20 per unit US corporation Sells 20 per unit CFC (Germany) Sells 10 per unit CFC (Cayman) Manufactures goods COGS: 10 per unit
31 Subpart F income Overview To target the perceived abuse, certain categories of income ( tainted income ) became subject to immediate inclusion in the US Shareholder s taxable income Tainted income Subpart F income (foreign base company and insurance income) Investments in US property Subpart F inclusion Immediate inclusion whether or not actual dividend received by US Shareholder of CFC FTC available Subsequent distributions treated as previously taxed income (so-called PTI)
32 International tax concepts: Transfer pricing
33 Transfer pricing In general Definition: Pricing of transactions between controlled entities Perceived abuse: Due to the special relationship between related parties, the transfer price may be different than the price that would have been agreed between unrelated parties
34 Transfer pricing Example of perceived abuse Assume: German CFC manufactures goods for sale by US corporation in the US market. Cayman CFC has no substance (no employees, no office, etc.) Sells 20 per unit US corporation Sells 20 per unit CFC (Germany) Sells 10 per unit CFC (Cayman) Manufactures goods COGS: 10 per unit
35 Transfer pricing Rules and regulations Section 482 Goal Gives IRS authority to make allocations necessary to prevent evasion of taxes or clearly to reflect the income of organizations, trades or businesses It also provides that in respect of intangible property transactions, the income with respect to such transfer or license shall be commensurate with the income attributable to the intangible Ensure that pricing of transactions between controlled entities is consistent with the pricing of transactions between third parties (the so-called arm s length standard)
36 Transfer pricing Potential penalties Objective Encourage taxpayers to make reasonable efforts to determine and document the arm s-length character of their inter-company transfer prices Unless a taxpayer can demonstrate reasonable cause and good faith in determination of the reported transfer price, 20% non-deductible transactional penalty on a tax underpayment attributable to a transfer price claimed on a tax return that is 200% or more, or 50% or less than the arm s-length price, or 40% if the reported transfer price is 400% or more, or 25% or less than the arm slength price. Contemporaneous documentation To avoid a transfer pricing penalty, a taxpayer must maintain sufficient documentation to establish that it reasonably concluded that, given the available data, its selection and application of a pricing method provided the most reliable measure of an arm s length result and must provide that documentation to the IRS within 30 days of a request for it in connection with an examination of the taxable year to which the documentation relates.
37 Recent developments
38 Recent developments Regulations Temp. Treas. Reg T(f)(2), T.D (aggregate valuation in transfer pricing) Treas. Reg , T.D (country-by-country reporting) Treas. Reg through , T.D (gain or loss on functional currency) Treas. Reg (a)-0, 1.367(a)-1 through -7, 1.367(d)-1, (b)-1, T.D (final 367 regulations) Treas. Reg (c)-1T through -7T, B-2T, T.D (transfer of built-in gain property to partnership) Treas. Reg through -4, T.D (final section 385 regulations)
39 Recent developments Debt push down Inversion example (double dummy structure) Public Cash and stock Cash and stock Cash Stock and note New foreign parent Stock and note Cash and stock Cash and stock S/Hs US parent Merger US merger sub Foreign merger sub Merger Foreign parent Public S/Hs New foreign parent Creditor Debtor US parent Foreign parent
40 Recent developments Repatriation strategies All cash Ds How should we repatriate FS1 s 100x of earnings? USP AB: 100x AB: 10x FMV: 100x FS2 FS1 FMV: 100x E&P: 0x Taxes: 0x Tax rate: 10% E&P: 100x Taxes: 30x
41 Recent developments Repatriation strategies All cash Ds (cont.) USP transfers its shares of FS2 to FS1 in exchange for 100x cash/note and immediately after, FS2 files an election to be treated as disregarded from its owner from its owner, FS1. USP 100x cash/note 1 FS2 stock FS2 FS1 FS2 2
42 Recent developments Cases Grecian Magnesite Mining, Industrial & Shipping Co., SA v. Commissioner Decision July 13, Decision Tax Court rejected the IRS s longstanding position in Rev. Rul and held that the gain on the disposition of a US partnership interest by a foreign partner was US-tax-exempt. State aid (EU): Amazon: Final decision published in October Decision The EC found that Luxembourg approved non-arm s length royalty payments to be paid to Luxembourg entities. GDF Suez: Opening decision published in January Decision The preliminary decision by the EC is that Luxembourg misapplied the law. Apple: Final decision published in December Decision The EC found that the rulings given to the Irish subsidiaries endorsed an inappropriate attribution of profit within the Irish subsidiaries and constituted illegal state aid. 13 billion (plus compound interest). Sale of Novo Banco with additional aid in the context of the 2014 Resolution of Banco EspíritoSanto S.A.: Decision published in October Decision The EC has approved Portuguese aid for the sale of Novo Banco.
43 Recent developments BEPS Action Plan (2013) Objective: aligning transfer pricing outcomes with value creation Important: adherence to arm s length principle explicitly affirmed (didn t have to be that way could have taken formulary apportionment road). Respect for separate legal entities (including decisions to capitalize subsidiaries) Respect for allocations of risk (subject to accurate delineation of transaction analysis): Risk/return trade-off Risks do not have to align with functions (e.g., contract R&D) Need to fully remunerate contributions to value BEPS guidance is not always clear and is subject to different interpretations; BUT, adherence to ALP provides a key discipline/check on its interpretation.
44 Reform proposals
45 Reform proposals House proposals expected to be released November 1 The current US worldwide tax system will be replaced with a 100-percent exemption for dividends from foreign subsidiaries (in which the US parent owns at least a 10-percent stake). As part of a transition to this new dividend exemption system, the proposal treats foreign earnings that have accumulated under the old system as repatriated. Accumulated foreign earnings held in illiquid assets will be subject to a lower rate than foreign earnings held in cash or cash equivalents. Payment of the tax liability will be spread out over several years. The proposal states that additional international rules will be provided to stop corporations from shipping jobs and capital overseas. To prevent companies from shifting profits to tax havens, tax rules will be provided to protect the US tax base by taxing at a reduced rate and on a global basis the foreign profits of US multinational corporations. The tax committees also will incorporate rules to level the playing field between US-headquartered parent companies and foreign-headquartered companies.
46 Questions
CONFERENCE AGREEMENT PROPOSAL INTERNATIONAL
The following chart sets forth some of the international tax provisions in the Conference Agreement version of the Tax Cuts and Jobs Act, as made available on December 15, 2017. This chart highlights only
More informationTECHNICAL EXPLANATION OF THE REVENUE PROVISIONS OF H.R. 5982, THE SMALL BUSINESS TAX RELIEF ACT OF 2010
TECHNICAL EXPLANATION OF THE REVENUE PROVISIONS OF H.R. 5982, THE SMALL BUSINESS TAX RELIEF ACT OF 2010 Prepared by the Staff of the JOINT COMMITTEE ON TAXATION July 30, 2010 JCX-43-10 CONTENTS INTRODUCTION...
More informationSENATE TAX REFORM PROPOSAL INTERNATIONAL
The following chart sets forth some of the international tax provisions in the Senate Finance Committee s version of the Tax Cuts and Jobs Act bill, as approved by the Senate Finance Committee on November
More informationChanges Abound in New Tax Bill for Multinational Companies
News Changes Abound in New Tax Bill for Multinational Companies 01.08.2018 Perhaps some of the most extensive changes in H.R. 1, known as the Tax Cuts and Jobs Act (the Act ), deal with the taxation of
More informationSENATE TAX REFORM PROPOSAL INTERNATIONAL
The following chart sets forth some of the international tax provisions in the Senate s version of the Tax Cuts and Jobs Act, as approved by the Senate on December 2, 2017. This chart highlights only some
More informationChapter 24. Taxation of International Transactions. Eugene Willis, William H. Hoffman, Jr., David M. Maloney and William A. Raabe
Chapter 24 Taxation of International Transactions Eugene Willis, William H. Hoffman, Jr., David M. Maloney and William A. Raabe Copyright 2004 South-Western/Thomson Learning Overview Of International Taxation
More informationFDU: U.S. International Corporate Tax
190 Controlled Foreign Corporations 191 CFCs: Introduction Subpart F designed to prevent deferral of portable income Applies to US Shareholders of Controlled Foreign Corporations earning Subpart F income
More informationInternational Income Taxation Chapter 10
Presentation: International Income Taxation Chapter 10 Professor Wells March 29, 2012 Overview of 367 Tax-free treatment under the Subchapter C rules 367(a): Governs transfer of appreciated property by
More informationBasics of International Tax Planning with Tax Reform
Basics of International Tax Planning with Tax Reform Layla Asali & Andy Howlett TEI Houston Tax School 2018 February 28, 2018 Agenda U.S. International Tax System Overview Deemed Repatriation Global Intangible
More informationAnti-Inversion Guidance: Treasury Releases Temporary and Proposed Regulations
Inbound Tax U.S. Inbound Corner Navigating complexity In this issue: Anti-Inversion Guidance: Treasury Releases Temporary and Proposed Regulations... 1 Proposed regulations addressing treatment of certain
More informationPlanning with the New FTC Baskets
Planning with the New FTC Baskets 2018 U.S. Cross-Border Tax Conference May 15 17, 2018 kpmg.com Agenda 01 Significant Tax Reform changes to FTC rules - New FTC baskets and FTC limitation - Deemed paid
More informationInternational Tax: Tax Reform
International Tax: Tax Reform Joseph Calianno Partner and International Technical Tax Practice Leader Ben Vesely International Tax Senior Manager The below summary contains a high level overview of certain
More informationTransition Tax DEEMED REPATRIATION OVERVIEW
Transition Tax DEEMED REPATRIATION OVERVIEW Basic Framework A 10% U.S. shareholder (a US SH ) of a specified foreign corporation ( SFC ) must recognize its pro rata share of the SFC s post-1986 accumulated
More informationNew Tax Law: International
New Tax Law: International Provisions and Observations April 18, 2018 kpmg.com 1 In the context of international tax, the Public Law 115-97 (popularly, if not officially, referred to as the Tax Cuts and
More informationChairman Camp s Discussion Draft of Tax Reform Act of 2014 and President Obama s Fiscal Year 2015 Revenue Proposals
Chairman Camp s Discussion Draft of Tax Reform Act of 2014 and President Obama s Fiscal Year 2015 Proposals Relating to International Taxation SUMMARY On February 26, 2014, Ways and Means Committee Chairman
More informationThe 30th Annual Institute on Current Issues in International Taxation
The 30th Annual Institute on Current Issues in International Taxation November 30 December 1, 2017 Cross Border Spin-Offs, Issues and Planning John Merrick Brenda Zent Nicholas J. DeNovio Rachel D. Kleinberg
More informationARNOLD PORTER LLP. Special Edition: International Provisions of the American Jobs Creation Act. Overview INTERNATIONAL TAX HEADLINES DECEMBER 2004
INTERNATIONAL TAX HEADLINES Special Edition: International Provisions of the American Jobs Creation Act Overview The American Jobs Creation Act of 2004 (the AJCA or the Act ) was enacted on October 22nd,
More informationPartnership Issues in International Tax Planning Tax Executives Institute February 16, 2015
www.pwc.com Partnership Issues in International Tax Planning Tax Executives Institute Instructors Craig Gerson WNTS Principal Craig Gerson recently rejoined as a Principal in the Mergers and Acquisitions
More informationPlenary: global trends impacting international tax planning and a US tax update
Plenary: global trends impacting international tax planning and a US tax update Tom Calianese, Ernst & Young LLP James Sauer, Ernst & Young LLP Gerrit Groen, Ernst & Young LLP Disclaimer Ernst & Young
More informationTransition Tax and Notice Foreign Tax Credits BEAT Interactions
Transition Tax and Notice 2018-26 Foreign Tax Credits BEAT Interactions Steve Blore Greg Kernek Deloitte Tax LLP May 11, 2018 Transition Tax and Anti-Avoidance Copyright 2018 Deloitte Development LLC.
More informationTECHNICAL EXPLANATION OF THE SENATE COMMITTEE ON FINANCE CHAIRMAN S STAFF DISCUSSION DRAFT OF PROVISIONS TO REFORM INTERNATIONAL BUSINESS TAXATION
TECHNICAL EXPLANATION OF THE SENATE COMMITTEE ON FINANCE CHAIRMAN S STAFF DISCUSSION DRAFT OF PROVISIONS TO REFORM INTERNATIONAL BUSINESS TAXATION Prepared by the Staff of the JOINT COMMITTEE ON TAXATION
More information2017 Tax Reform: Checkpoint Special Study on foreign income, foreign persons tax changes in the "Tax Cuts and Jobs Act"
2017 Tax Reform: Checkpoint Special Study on foreign income, foreign persons tax changes in the "Tax Cuts and Jobs Act" On December 15, the Conference Committee-having reconciled and merged the differing
More informationComprehensive Reform of the U.S. International Tax System The NY State Bar Association Tax Section Annual Meeting
Comprehensive Reform of the U.S. International Tax System The NY State Bar Association Tax Section Annual Meeting Chair: Kathleen L. Ferrell, Davis Polk & Wardwell LLP Michael J. Caballero, Covington &
More informationUS TAXATION SYSTEM. Omri Yaniv International Tax Manager, PwC
US TAXATION SYSTEM Omri Yaniv International Tax Manager, PwC US Taxation System - List of Topic Basis of taxation Taxation of foreign corporations US domestic law US tax treaties Types of U.S. entities
More informationSilicon Valley Chapter
Silicon Valley Chapter Subpart F: Legislative Update Review and Planning Strategies March 23, 2017 Biltmore Hotel & Suites, Santa Clara Lowell D. Yoder lyoder@mwe.com Tax Reform Proposals President Trump
More informationAMERICAN JOBS CREATION ACT OF 2004
AMERICAN JOBS CREATION ACT OF 2004 OCTOBER 26, 2004 TABLE OF CONTENTS Page REPEAL OF EXCLUSION FOR EXTRATERRITORIAL INCOME AND DEDUCTIONS FOR DOMESTIC PRODUCTION ACTIVITIES... 1 TAX SHELTERS... 2 Information
More informationTAX REFORM ACT - IMPACT ON INTERNATIONAL OPERATIONS
TAX REFORM ACT - IMPACT ON INTERNATIONAL OPERATIONS December 20, 2017 BAKER BOTTS 1 View it as a Web Page. December 20, 2017 Tax Reform Act Impact on Taxpayers with International Operations Jon Lobb, Michael
More informationInternational Tax Update
International Tax Update Stephen Bates Jose Murillo Cynthia Yu 3 May 2016 Disclaimers This presentation is provided solely for the purpose of enhancing knowledge on tax matters. It does not provide tax
More informationCORPORATE INVERSIONS. Jack Miles, Esq. Kelley Drye & Warren LLP 101 Park Avenue New York, NY (212)
CORPORATE INVERSIONS Jack Miles, Esq. Kelley Drye & Warren LLP 101 Park Avenue New York, NY 10178 (212) 808-7574 jmiles@kelleydrye.com Background In a typical inversion, a U.S. multinational combines with
More informationHouse and Senate tax reform proposals could significantly impact US international tax rules
from International Tax Services House and Senate tax reform proposals could significantly impact US international tax rules November 28, 2017 In brief The House of Representatives passed the Tax Cuts and
More informationInternational tax implications of US tax reform
Arm s Length Standard Global views within reach. International tax implications of US tax reform Congress has approved and President Trump has signed into law a massive tax reform package that lowers tax
More informationAll you ever wanted to know about the BEAT and other exciting but ignored provisions of the Tax Cuts and Jobs Act
All you ever wanted to know about the BEAT and other exciting but ignored provisions of the Tax Cuts and Jobs Act by Ian Shane, Esq. Prime Global 2019 Tax Conference January 6-9, 2019 BEAT BEAT imposes
More informationInternational tax update. 1 May 2018
International tax update 1 May 2018 Disclaimer EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal
More informationForeign Tax Credit Update
GW-IRS 29 TH ANNUAL INSTITUTE ON CURRENT ISSUES IN INTERNATIONAL TAXATION Foreign Tax Credit Update December 16, 2016 Brenda Zent Office of International Tax Counsel U.S. Department of Treasury Jeffrey
More informationChicago November 7 and 8, 2014
2014 University of Chicago Federal Tax Conference Chicago November 7 and 8, 2014 International Issues Inherent in Subchapter K 1 Agenda Introduction A Detour into Subpart F Brown Group Rev. Rul. 91-32
More informationInternational Tax Reform - Practical Impacts and Considerations. 30 November 2017
International Tax Reform - Practical Impacts and Considerations 30 November 2017 Agenda Transition tax Territorial system Limitation on deductions of net interest Foreign high return amount / Global intangible
More informationTax Reform: Impact of International Provisions on Insurance Companies
Tax Reform: Impact of International Provisions on Insurance Companies 2018 Mid Year ABA Tax Section Meeting, Insurance Companies February 9, 2018, 3:30 4:30 p.m. Moderator: Clarissa Potter, KPMG, New York,
More informationTax Reform and U.S. Foreign Reporting for Individuals: New Cross-Border Repatriation and Inclusion Provisions
Tax Reform and U.S. Foreign Reporting for Individuals: FOR LIVE PROGRAM ONLY New Cross-Border Repatriation and Inclusion Provisions THURSDAY, FEBRUARY 15, 2018, 1:00-2:50 pm Eastern IMPORTANT INFORMATION
More informationUS Tax Reform: Impact on Private Funds
2018 INVESTMENT MANAGEMENT CONFERENCE CHICAGO US Tax Reform: Impact on Private Funds Adam J. Tejeda, New York Frank W. Dworak, Orange County January 31, 2018 Copyright 2018 by K&L Gates LLP. All rights
More informationRepatriation Tax Planning: Inbound Asset Transfers, Cash Dividends and Other Strategies for Tax Professionals
Repatriation Tax Planning: Inbound Asset Transfers, Cash Dividends and Other Strategies for Tax Professionals FOR LIVE PROGRAM ONLY TUESDAY, OCTOBER 30, 2018, 1:00-2:50 pm Eastern IMPORTANT INFORMATION
More information2/2/2018. Part I: Inbound Base Erosion Provision in socalled Tax Cut and Jobs Act. Inbound Planning & Developments
Inbound Planning & Developments Inbound International Tax Issues with a Focus on Tax Reform 2017 PLI, New York February 6, 2018 Peter Glicklich Davies Ward Phillips & Vineberg LLP Oren Penn PricewaterhouseCoopers
More informationManaging Effective Tax Rate: Global Tax Reform Tax Executive Institute. May 1, 2017 Houston, TX
Managing Effective Tax Rate: Global Tax Reform Tax Executive Institute May 1, 2017 Houston, TX Notice The content presented in this presentation is for discussion purposes only and is not intended to be
More informationMANAGING INTERNATIONAL TAX ISSUES
MANAGING INTERNATIONAL TAX ISSUES Starting A Business Retirement Strategies Operating A Business Marriage Investing Tax Smart Estate Planning Ending A Business Off to School Divorce And Separation Travel
More informationCh International Tax- Free Exchanges P.814
Ch. 10 - International Tax- Free Exchanges P.814 Cross-border entity structuring options: 1) Corporation: domestic, foreign (destination country) or other (intermediary) foreign country, including special
More informationInternational Tax Reporting and Opportunities
International Tax Reporting and Opportunities Justin Hobson May 16, 2017 2017 Lane Powell PC 1 Agenda 1. Objective 2. Acronyms 3. Common Outbound Structures 4. Common Inbound Structures 5. Current Tax
More informationU.S. Tax Legislation Corporate and International Provisions. Corporate Law Provisions
U.S. Tax Legislation Corporate and International Provisions On December 20, 2017, Congress enacted comprehensive tax legislation (the Act ). This memorandum highlights some of the important provisions
More informationPRESIDENT S LEGISLATIVE PROPOSALS
PRESIDENT S LEGISLATIVE PROPOSALS Authors Philip R. Hirschfeld Elizabeth Zanet Rusudan Shervashidze Tags 14% Tax 19% Minimum Tax C.F.C. Deemed Mandatory Repatriation Subpart F On September 29, 2015, various
More informationPlease any questions for Robert to: Thank you.
EXPLORING THE NEW TERRITORIAL TAX SYSTEM PORTLAND TAX FORUM SHORT TOPIC PRESENTATION JANUARY 18, 2018 ROBERT J. WOLFER, CPA Robert is a Senior Tax Manager with DiLorenzo & Company, LLC, where his duties
More informationUS Tax Reform For Canadian Companies
For Canadian Companies 1 Agenda Domestic Changes Income Tax Rate Reduction Update for Certain Deductions NOL, Interest, Depreciation, DPAD (Section 199) Credits and Incentives International Changes Migration
More informationTerritoriality for the United States? Panelists
Territoriality for the United States? American Bar Association, Section of Taxation, Committee on Foreign Activities of United States Taxpayers May 6, 2011 1 Panelists [TBD], U.S. Treasury Department Jeff
More informationTax Executives Institute
Tax Executives Institute International Tax Update (Detroit) Dates: October 26, 2017 Presenter: Seth Green Partner WNT International Tax Notice The following information is not intended to be written advice
More informationIssues in International Corporate Taxation: The 2017 Revision (P.L )
Issues in International Corporate Taxation: The 2017 Revision (P.L. 115-97) Jane G. Gravelle Senior Specialist in Economic Policy Donald J. Marples Specialist in Public Finance May 1, 2018 Congressional
More informationFDU: U.S. International Corporate Tax
93 Foreign Tax Credit 94 Foreign Tax Credit Credit allowed for foreign income taxes Limited to portion of current year tax generated by foreign source taxable income Excess credits carried over Back 1
More informationUnited States Tax Alert
International Tax United States Tax Alert 6 February 2015 On February 2, 2015, the Obama Administration (the Administration) released its FY2016 Budget and the Treasury Department released the General
More informationPresented to: NRF Canadian Tax Clients. New U.S. tax legislation Impact on Selected Cross-Border Transactions
January 11, 2018 Presented to: NRF Canadian Tax Clients New U.S. tax legislation Impact on Selected Cross-Border Transactions Adrienne Oliver Tel: (416) 216-1854 email: adrienne.oliver@nortonrosefulbright.com
More informationCROSS-BORDER INCOME TAX ISSUES IN OUTBOUND ESTATE PLANNING. Jenny Coates Law, PLLC, International Tax Lawyer
CROSS-BORDER INCOME TAX ISSUES IN OUTBOUND ESTATE PLANNING Jenny Coates Law, PLLC, International Tax Lawyer jenny@jennycoateslaw.com Increased Tax Complexity Whether between the US and Canada or the US
More informationr u c h e l m a n IMPACT OF THE TAX CUTS AND JOBS ACT ON U.S. INVESTORS IN FOREIGN CORPORATIONS A NEW TAX REGIME FOR C.F.C. S: WHO IS G.I.L.T.I.?
r u c h e l m a n IMPACT OF THE TAX CUTS AND JOBS ACT ON U.S. INVESTORS IN FOREIGN CORPORATIONS A NEW TAX REGIME FOR C.F.C. S: WHO IS G.I.L.T.I.? MODIFICATIONS TO THE FOREIGN TAX CREDIT SYSTEM UNDER THE
More informationProvisions affecting private equity funds in tax reform bills House bill and Senate Finance Committee bill
Provisions affecting private equity funds in tax reform bills House bill and Senate Finance Committee bill November 22, 2017 1 The U.S. House of Representatives on November 16, 2017, passed H.R. 1, the
More informationTax Provisions in Administration s FY 2016 Budget Proposals
Tax Provisions in Administration s FY 2016 Budget Proposals International February 2015 kpmg.com HIGHLIGHTS OF INTERNATIONAL TAX PROVISIONS IN THE ADMINISTRATION S FISCAL YEAR 2016 BUDGET KPMG has prepared
More informationPractising Law Institute
Practising Law Institute Tax Planning For Domestic & Foreign Partnerships, LLCs, Joint Ventures & Other Strategic Alliances 2016 International Joint Venture Issues Paul Oosterhuis Skadden, Arps, Slate,
More informationTaxation of International Transactions
Taxation of International Transactions General Tax Provisions US Individuals Gross Income Business Deductions Personal Deductions Personal Exemptions = Taxable Income X Tax Rates (about 40%) = Basic Tax
More informationTax Cuts and Jobs Act of 2017 International Tax Provisions and Provisions Affecting Exempt Organizations
Tax Cuts and Jobs Act of 2017 International Tax Provisions and Provisions Affecting Exempt Organizations By Robert E. Ward* Robert E. Ward outlines the international tax provisions and provisions affecting
More informationTax Cuts & Jobs Act: Considerations for Funds
A LERT M EM OR A N D UM Tax Cuts & Jobs Act: Considerations for Funds January 25, 2018 On December 22, 2017, the President signed into law the 2017 U.S. tax reform bill formerly known as the Tax Cuts &
More informationInternational Income Taxation Chapter 12: EXPLOITATION OF INTANGIBLES
Presentation: International Income Taxation Chapter 12: EXPLOITATION OF INTANGIBLES Professors Wells April 20, 2016 Chapter 12 Exploiting Intangibles Outside U.S. Choices for structuring these arrangements:
More informationBusiness Tax Reform: Where Are We Now?
70 th Annual University of Chicago Law School Federal Tax Conference Nov. 3, 2017 Business Tax Reform: Where Are We Now? Rosanne Altshuler David Hariton David P. Lewis Nicholas J. DeNovio (Moderator) 0
More informationTax Cuts & Jobs Act: Considerations for Funds
Tax Cuts & Jobs Act: Considerations for Funds December 22, 2017 On December 22, 2017, the President signed into law the 2017 U.S. tax reform bill formerly known as the Tax Cuts & Jobs Act (the TCJA ).
More informationInternational Income Taxation Chapter 12: EXPLOITATION OF INTANGIBLES
Presentation: International Income Taxation Chapter 12: EXPLOITATION OF INTANGIBLES Professors Wells April 16, 2018 Chapter 12 Exploiting Intangibles Outside U.S. Choices for structuring these arrangements:
More informationInternational Income Taxation Chapter 10: INTERNATIONAL TAX-FREE EXCHANGES
Presentation: International Income Taxation Chapter 10: INTERNATIONAL TAX-FREE EXCHANGES Professor Wells April 4, 2018 Overview of 367 Tax-free treatment under the Subchapter C rules 367(a): Governs transfer
More informationWELCOME TO OUR WEBINAR
WELCOME TO OUR WEBINAR International Franchise Structures Tuesday, September 15, 2015 1:00 p.m. EDT If you cannot hear us speaking, please make sure you have called into the teleconference number on your
More informationABA Tax Section 2017 May Meeting. Tax Reform, Treaties, and Inbound Investment
ABA Tax Section 2017 May Meeting Tax Reform, Treaties, and Inbound Investment Robert Stack, Moderator Layla Asali, Miller & Chevalier Jesse Eggert, KPMG Gretchen Sierra, Deloitte Agenda Key Features of
More information2013 U.S. Tax Policy Update
2013 U.S. Tax Policy Update Insert client logo here (or delete box) Frank Landreneau Director, International Tax Services PKF Texas, P.C. International Tax Policy Debate Reason for consensus for change:
More informationU.S. Tax Reform. 33 rd Annual TEI-SJSU High Tech Tax Institute November 14, 2017
U.S. Tax Reform 33 rd Annual TEI-SJSU High Tech Tax Institute November 14, 2017 David Forst, Partner Fenwick & West LLP Nathan Giesselman, Partner Skadden, Arps, Slate, Meagher & Flom LLP Sajeev Sidher,
More informationSilicon Valley Chapter
Silicon Valley Chapter Subpart F: Section 956 Review and Planning Strategies March 23, 2017 Biltmore Hotel & Suites, Santa Clara Lowell D. Yoder lyoder@mwe.com Basic Rule A CFC s investment of its earnings
More informationInternational Tax. Chapter 8. Senate Proposal
International Tax Chapter 8 Senate Proposal DISC s Terminated Current DISCs and IC DISCS in 2018 terminated. 3 100% Exemption (via DRD) for Foreign-Source Non-Subpart F Dividends ( - $215.5 Bil. over 10
More informationInternational Tax. Chapter 8. Senate Proposal
International Tax Chapter 8 Senate Proposal DISC s Terminated Current DISCs and IC DISCS in 2018 terminated. 3 100% Exemption (via DRD) for Foreign-Source Non-Subpart F Dividends ( - $215.5 Bil. over 10
More informationInternational Journal TM
International Journal TM Reproduced with permission from Tax Management International Journal, Vol. 47, No. 9, p. 559, 09/14/2018. Copyright 2018 by The Bureau of National Affairs, Inc. (800-372-1033)
More informationInternational Tax Update
International Tax Update AMERICAN BAR ASSOCIATION SECTION OF TAXATION 26TH ANNUAL PHILADELPHIA TAX CONFERENCE November 6, 2015 11:20 a.m. 12:35 p.m. International Tax Update The panel will discuss the
More informationComparison of Key Anti-Base Erosion Rules in the Tax Reform Act of 2017 and under UK Tax Law Calum Dewar, PwC Mike Williams, HM Treasury
Comparison of Key Anti-Base Erosion Rules in the Tax Reform Act of 2017 and under UK Tax Law Calum Dewar, PwC Mike Williams, HM Treasury International Tax Policy Forum and Institute of Economic Law Conference
More informationInternational Provisions in U.S. Tax Reform A Closer Look
December 22, 2017 International Provisions in U.S. Tax Reform A Closer Look by Peter Connors John Narducci Stephen Jackson Barbara De Marigny Michael Rodgers On December 15, the U.S. Congress issued its
More informationTax Cuts & Jobs Act: The Road to Reform Reform Results of Reform
Tax Cuts & Jobs Act: The Road to Reform Reform Results of Reform Mindy Herzfeld University of Florida Levin College of Law UF Law Summer Tax Course July 23, 2018 7/17/2018 1 30 Years in the Making The
More informationInternational Tax. Chapter 8
International Tax Chapter 8 Grecian Magnesite Mining (GMM), Industrial & Shipping Co., SA, 149 TC No. 3 8-10 (July 13, 2017) Foreign Corporation's Disposition Of Interest In U.S. Partnership (55 Page Opinion)
More informationRecent developments in international tax
Recent developments in international tax Disclaimer EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate
More informationFrom the Deferral Frying Pan into the Worldwide Fire Rethinking CFC Taxation
From the Deferral Frying Pan into the Worldwide Fire Rethinking CFC Taxation 2018 U.S. Cross-Border Tax Conference May 15 17, 2018 kpmg.com Notices The following information is not intended to be written
More informationSPECIAL CONCERNS FOR CROSS-BORDER TAX PLANNING. Jenny Coates Law, PLLC Seattle Tax Group - Sept. 17, 2012
SPECIAL CONCERNS FOR CROSS-BORDER TAX PLANNING 1 Jenny Coates Law, PLLC www.jennycoateslaw.com; Seattle Tax Group - Sept. 17, 2012 Increased Tax Complexity Whether between the US and Canada or the US and
More informationInternational Tax Reform. March 19, 2018 Nicole R. Suk, CPA
International Tax Reform March 19, 2018 Nicole R. Suk, CPA Why International Reform? Shift to territorial system Protect the U.S. tax base from perceived crossborder erosion Incentive for economic investment
More informationInternational Tax & the TCJA for Strategic Alliance Firms
International Tax & the TCJA for Strategic Alliance Firms MAY 22, 2018 TO RECEIVE CPE CREDIT Individuals Participate in entire webinar Answer polls when they are provided Groups Group leader is the person
More informationWhat Entity Do You Want To Be?
What Entity Do You Want To Be? Presenters: Carla M. Smaston, Plante Moran Chip Chambley, Dixon Hughes Goodman, LLP Agenda I. Choice of Entity for Foreign Operations Overview of U.S. System Tax Classifications
More informationU.S. Investment into Brazil: Planning to Avoid the U.S. Anti-Deferral Rules
U.S. Investment into Brazil: Planning to Avoid the U.S. Anti-Deferral Rules Presented by: Jeffrey Rubinger #10887549_2.pptx 1 Basic Rules of Subpart F Certain income of a controlled foreign corporation
More informationDirectors Club. March 13, 2018
Directors Club March 13, 2018 1 The Tax Wars 2 Business tax highlights of tax reform bills Reduction of corporate tax rate: Permanently reduces the 35% corporate income tax rate to a flat 21%, beginning
More informationTax Executives Institute
Tax Executives Institute International Tax Update - Hot Topics & Planning Opportunities Ron Dabrowski Principal Washington National Tax Kimberly Roth Managing Director International Tax Houston, TX May
More informationEntertainment and Meals
Entertainment and Meals Entertainment. Deductions are eliminated for entertainment expenses under Sec. 274(a)(1) expenses directly related to or associated with entertainment. Effective: Amounts incurred
More informationPractical Issues in Subpart F and Section 956
USA Branch of the International Fiscal Association New York Region Summer Meeting Wednesday, July 16, 2014 Practical Issues in Subpart F and Section 956 Nicole Hinton Partner PricewaterhouseCoopers Colleen
More informationTax Reform Implementation. American Bar Association Section of Taxation May 11, 2018
Tax Reform Implementation American Bar Association Section of Taxation May 11, 2018 Presenters Pete Bautz, American Council of Life Insurers Howard Stecker, EY Brenda Viehe Naess, Washington Advocates
More informationU.S. tax reforms prevention of base erosion. S. Krishnan
U.S. tax reforms prevention of base erosion S. Krishnan 2 U.S. tax regime prior to 2018 Amongst the large economies in the world, the United States had the highest statutory corporate income tax rate upwards
More informationUS tax reform: A sea change for international taxation The Dbriefs Tax Reform series
US tax reform: A sea change for international taxation The Dbriefs Tax Reform series Todd Izzo, Partner, Deloitte Tax LLP Rochelle Kleczynski, Partner, Deloitte Tax LLP Chris Trump, Principal, Deloitte
More informationInternational Tax Greece Highlights 2018
International Tax Greece Highlights 2018 Investment basics: Currency Euro (EUR) Foreign exchange control Capital controls are in force and certain limitations still apply on bank withdrawals and bank transfers
More informationFeedback for Notice (Repatriation) as of 1/31/2018
Feedback for Notice 2018-07 (Repatriation) as of 1/31/2018 NOTICE 2018-07, Section 3.01 Determination of Aggregate Foreign Cash Position How will intercompany dividends be calculated? Section 3.01(b) Treatment
More informationImpacts of U.S. International Tax Reform. October 23, 2018
Impacts of U.S. International Tax Reform October 23, 2018 Christopher Jentile (Verizon), Moderator William Crowley (PwC) Anthony Sileo (KPMG) Stephen Blough (KPMG) 2 Christopher Jentile Christopher is
More informationTax Executives Institute Houston Chapter Advanced ASC 740 International Tax Issues. May 4, Ernesto Galvan and Karen Hoffman PwC Houston
Tax Executives Institute Houston Chapter Advanced ASC 740 International Tax Issues May 4, 2016 Ernesto Galvan and Karen Hoffman Houston Ernesto Galvan Partner International Tax Services Group, PricewaterhouseCoopers
More informationSummary of 2017 Tax Law Changes
1 2017 Tax Law: Massive Changes HR 1, as passed by Congress Stephen C. Fox, CPA 2 Overview Major corporate provisions, including rate cut to 21% Standard deduction up, exemptions gone Deduction for 20%
More information