Strategizing International Tax Best Practices – by Keith Brockman

Posts tagged ‘GILTI’

US Tax Act: SIT implications

McDermott Will & Emery highlights the state tax effects of the deemed repatriation and GILTI tax; some of which may not may be intuitive.  The deemed repatriation income is included under Sec. 951(a), whereas the GILTI inclusion is includable under new Sec. 951A.

The concept of special deductions also is highlighted for further analysis.

Note, as different technical details of this bill are further reviewed, the SIT aspect becomes even more complex with timing issues by states not uniform from the federal changes.

The deemed repatriation inclusion will be includable in 2017 US federal income tax returns for calendar-year taxpayers, whereas most provisions will take effect in 2018 or later.

https://www.mwe.com/en/thought-leadership/publications/2017/12/state-tax-implications-repatriation-transition

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