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Daily Tax Report: State

Iowa Revenue Department Requires Foreign Income on State Returns

Feb. 27, 2020, 7:24 PM

Multinational corporations owing tax in Iowa will need to include certain earnings from foreign subsidiaries on their state returns, beginning with the 2019 tax year.

The Iowa Department of Revenue published a rule in the Administrative Bulletin Wednesday requiring businesses to recognize global intangible low-taxed income, or GILTI, on their state tax returns after removing any federal deductions under federal tax code Section 250. The rule, effective beginning April 1, also features a formula for apportioning GILTI within and without Iowa.

GILTI was designed as a new category of foreign income under the 2017 federal tax overhaul....

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