Friedman’s Ryan Dudley, International Tax Practice Co-Leader, spoke in an exclusive interview with the Financial Advisor on how clients with international tax holdings can benefit from new tax regulations.
Wealthy clients who have substantial investments in certain multinational megacorporations might benefit from a new U.S. tax regulation.
The Treasury Department and the IRS have issued final regulations addressing income from certain overseas corporations that are subject to a high tax rate. The new rules allow shareholders to exclude certain income from their Global Intangible Low Taxed Income (GILTI) computation. The regulations become effective Sept. 21.
Generally, GILTI is the income earned by controlled foreign corporations (CFCs). U.S. corporate shareholders have been allowed deductions and credits against tax allocable to GILTI, but that benefit had not been extended to individual shareholders.
For more information on you may be able to benefit from these regulations, read here.