New York City’s Tax Grab on Foreign Income Called Unfair Outlier (3)

New York City’s move to tax far more of corporations’ offshore income than the state could cost companies such as Pfizer Inc. and Goldman Sachs Group Inc. millions of dollars a year, prompting consternation from business groups.

The new treatments are tied to the 2017 federal tax overhaul that created a new levy on global intangible low-taxed income. GILTI was intended to stifle multinationals, like technology and pharmaceutical companies, from shifting profits offshore through intangible assets such as valuable intellectual properties.

Business groups are upset because the city is requiring companies to include the full amount of GILTI income in ...