Alot of guidance is virtually rolling off the press!
PTI guidance for year-end financial statements
Foreign tax credits, including application of GILTI
Section 163(j) interest guidance
Proposed regulations on PTI application
Section 250 guidance
The guidance will be complex and lengthy, and it represents only one step towards achieving more certainty into the complex nuances of the US Tax Act. EY’s Global Tax Alert provides a summary for reference.
The Tax Executives Institute (TEI) has provided numerous comments re: Sec 965 positions as written in the law, supplemented by additional guidance.
Summary of comments:
Cash position definition
Foreign Tax Credit, double-counting of Earnings & Profits
Dividends paid from a CFC to another CFC or a third party
Hovering deficit taxes
Stock basis election should be extended to 180 days, vs. 90 days per IRS guidance
Changes in methods of accounting
CFC attribute mismatches
Foreign tax credit adjustment
“Applicable percentage” guidance
Average FX rate, vs. year-end spot rate, used for measurement
2017 overpayments applied automatically to transition tax (Still an issue!)
The letter provides background and examples related to the comment areas, and should be reviewed to gain a further understanding of the complex dynamics that will hopefully be mitigated via the suggestions.
The latest US tax updates are summarized in EY’s Global Tax Alert, with a referenced link
Tax Reform 2.0: House is moving forward with three separate bills, hoping at least one will pass, although Senate will not review prior to Nov. midterm elections
GILTI: Additional rules re: interaction of Foreign Tax Credit and GILTI by Dec. 31, 2018 (It is hoped that the calculation of Sec. 163(j) interest limitations will be addressed re: application on a separate CFC basis, consolidated basis, or other method)
GILTI: Final regulations June 2019
IRS plans to establish separate webpages for the major international tax provisions enacted by the 2017 tax reform to provide informal taxpayer guidance. The webpages will follow a similar format that was adopted by the IRS to offer informal information regarding the TCJA’s transition tax.
IRS: Restructuring the Advance Pricing and Mutual Agreement program (APMA) to consolidate resources and improve internal processes, including economists.
There is still significant uncertainty re: Sec. 965 repatriation tax, GILTI, FDII and BEAT provisions by taxpayers. It is hopeful that meaningful guidance will be issued shortly.