Challenges Eyed to Nebraska Tax Guidance on Foreign Income

Multinational corporations in Nebraska may head to court against recent guidance that requires them to include foreign income on their state tax returns.

The Department of Revenue’s informal guidance concerns tax treatment of two international provisions in the 2017 federal tax overhaul. It requires multinational companies registered in the state for tax purposes to include the global intangible low-taxed income, or GILTI, and foreign-derived intangible income, or FDII, in their state tax calculations.

States often conform their laws to the federal tax code to adjust to changing tax bases, boost revenue or remain competitive. But GILTI is different, ...