Daily Tax Report: International

N.J. Rollback of Foreign Income Tax Rules Sparks Businesses’ Hope

Aug. 22, 2019, 8:30 AM

New Jersey’s withdrawal of plans to aggressively tax a new category of foreign income created by the federal tax overhaul is a step in the right direction but could be more company-friendly, business representatives said.

The Garden State on Aug. 20 revoked its controversial guidance on how multinational companies have to factor the 2017 federal tax law’s global intangible low-taxed income, or GILTI, into their state tax calculations. Withdrawal of the controversial guidance brings New Jersey a step closer to aligning itself with the way other states with a large multinational presence treat GILTI. And it could mean lower tax...

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