IRS Form: Form 8993 Instructions Reporting FDII, GILTI Deduction (IRC §250)

Form 8993 Instructions released January 4 to reflect new tax code Section 250‘s deduction for reporting foreign-derived intangible income and global intangible low-taxed income. Each deduction, once calculated, is reported on Schedule 1120, Schedule C, the instructions note. The 2017 tax act (Pub. L. No. 115-97) added tax code Section 250 to impose a tax on “global intangible low-taxed income” (GILTI) of U.S. shareholders of CFCs, with a deduction of 37.5% for foreign-derived intangible income (FDII) plus 50% of the GILTI, and the amount treated as a dividend under Section 78. [IRS ...