Skip to Content



Alert: IRS guidance clarifies GILTI calculation

October 1, 2018 Article 5 min read
Authors:
Kellie Becker Randall Janiczek Irina Rangelova Michael Monaghan
IRS releases guidance on calculating global intangible low-taxed income (GILTI).

Image of woman standing in a city center

The IRS has released proposed regulations to help affected taxpayers calculate the amount of global intangible low-taxed income (GILTI) generated by controlled foreign corporations (CFCs). The guidance is intended to help affected taxpayers:

  • Calculate the amount of global intangible low-taxed income generated by a controlled foreign corporation.
  • Distribute that amount accurately among shareholders.

These proposed regulations help U.S. taxpayers who own CFCs calculate a GILTI inclusion amount based on the aggregate activities of all subsidiaries. This will add some new complexity to tax returns for 2018 and beyond.

Related Thinking

2021 Year-end Webinar Series

Webinar

Tax planning: Key 2019 year-end strategies for individuals

Webinar 1 hour watch

Foreign tax credits: What’s in your basket

Webinar 60 min watch