Tennessee businesses can largely skip paying state taxes on two new foreign income categories under legislation Gov. Bill Lee (R) signed into law.
- S.B. 558, which deals with the state’s excise tax on corporate earnings, is Tennessee’s latest response to federal tax code changes.
- The new state law lets taxpayers deduct global intangible low-taxed income (or GILTI) and foreign income amounts deemed repatriated under new federal code Sections 951A and 965(a), respectively.
- Taxpayers must add back 5 percent of each income category—a move aimed at preventing taxpayers from shifting income overseas undetected. Connecticut and Massachusetts have comparable policies. ...