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 * International Tax




GILTI FUNDAMENTALS AND CALCULATIONS



There is increasing attention on the U.S.’s Global Intangible Low-Taxed Income
(GILTI) tax and its interaction with new minimum tax rates taking effect around
the world under the international Pillar Two initiative. GILTI is currently
being reviewed in detail by tax authorities who are looking at how the U.S.
might align it with the international Pillar Two initiative.

This attention highlights the importance of understanding GILTI calculations,
which apply to U.S.-based companies with foreign corporations. While the Pillar
Two minimum income taxes are targeted at reaching a minimum 15% net income
effective rate, and apply country-by-country, the GILTI rules have a different
effective rate, and the core calculations work differently.

This OnPoint discusses:

 * A comparison of the U.S. GILTI rules, and the international Pillar Two
   minimum taxes;
 * The fundamentals that apply to GILTI calculations; and,
 * Options that are available to help address overlapping taxes.

Download your complimentary copy now.


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