What is foreign-derived intangible income and how is it taxed under the TCJA? Q.What is foreign-derived intangible income and how is it taxed under the TCJA? A.Foreign derived intangible income is income that comes from exporting products tied to intangible assets, such as patents, trademarks, and copyrights, held in the United States. The Tax Cuts and Jobs Act taxes FDII at a reduced rate. Read more about What is foreign-derived intangible income and how is it taxed under the TCJA?
What are inversions, and how did TCJA affect them? Q.What are inversions, and how did TCJA affect them? A.An inversion is a transaction in which a US-based multinational company merges with a smaller foreign company and then establishes its residence in the foreign company’s country. As a foreign resident, the company can sometimes significantly reduce its taxes without changing the location of any real business activities. Read more about What are inversions, and how did TCJA affect them?
What are the OECD Pillar 1 and Pillar 2 international taxation reforms? Q.What are the OECD Pillar 1 and Pillar 2 international taxation reforms? A.The Organization for Economic Cooperation and Development (OECD) and G-20 countries started the Base Erosion and Profit Shifting (BEPS) initiative in 2013 to combat aggressive tax avoidance by multinational corporations. Its Inclusive Framework now includes over 135 countries and jurisdictions working to implement different measures to limit tax avoidance, increase transparency, and create a more coherent international tax system. Read more about What are the OECD Pillar 1 and Pillar 2 international taxation reforms?