Amended Sec. 965 May Provide a Sec. 382 Benefit: Deemed Repatriation and RBIG

The legislation known as the Tax Cuts and Jobs Act of 2017 (TCJA), P.L. 115-97, imposes a “toll charge” on the mandatory deemed repatriation of certain deferred foreign earnings. As part of the transition to a territorial tax system, amended Sec. 965 uses the mechanics of the current Subpart F provisions to impose a one-time toll tax on the undistributed, non-previously taxed, post-1986 foreign earnings and profits (E&P) of certain U.S.-owned corporations. New Sec. 965(a) increases Subpart F income of a “deferred foreign income corporation” with positive earnings as of the measurement dates Nov. 2, 2017, or Dec. 31, 2017, whichever is greater.

To read the full article in The Tax Adviser, click: Amended Sec. 965 May Provide a Sec. 382 Benefit: Deemed Repatriation and RBIG.