BTAX OnPoint: GILTI High-Tax Exclusion

The IRS and Treasury issued final regulations on the global intangible low-taxed income high-tax exclusion rules on Monday. The IRS and Treasury also concurrently issued complementary proposed rules coordinating the GILTI high-tax exclusion rules with the preexisting subpart F high-tax exception.

The final high-tax exclusion rules give companies the option to elect out of the 2017 tax law’s provision on global intangible low-taxed income, or GILTI, and its corresponding tax, if they are already paying at least 18.9% in taxes offshore. The GILTI tax, under tax code Section 951A, is designed to ensure companies pay a minimum tax on ...