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Guidance Related to the High-Tax Exception Under Subpart F and the High-Tax Exclusion for Global Intangible Low-Taxed Income

These final regulations permit U.S. shareholders of controlled foreign corporations (CFCs) to elect to exclude items of high-taxed income from their…

What Guidance Related to the High-Tax Exception Under Subpart F and the High-Tax Exclusion for Global Intangible Low-Taxed Income requires

These final regulations permit U.S. shareholders of controlled foreign corporations (CFCs) to elect to exclude items of high-taxed income from their Global Intangible Low-Taxed Income (GILTI) computation on a tested-unit basis. Under §1.951A-2(c)(6), the election applies if the foreign effective tax rate on the income exceeds 90 percent of the maximum U.S. corporate tax rate (currently 18.9%).

Pillar: Tax & Transfer Pricing · Authority: Department of the Treasury, Internal Revenue Service (IRS) · Version: 1.0.0 · Last updated:

Primary source: https://www.federalregister.gov/documents/2020/07/23/2020-15351/guidance-related-to-high-tax-exception-under-subpart-f

SHA-256 integrity: 182d0f341560246a6084108377a4e0c9e9c7abbfa990fdfd895e48e2903b7216

Primary Citations — 7 traced to source

  • 26 CFR §1.951A-2(c)(6) - GILTI high-tax exclusion election
  • 26 CFR §1.951A-2(c)(6)(ii)(A) - Definition of a tested unit

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