Our International Tax Group examines the high-tax exclusion (HTE) in new final regulations under the global intangible low-taxed income (GILTI) regime and the potentially precarious side effects U.S. shareholders face in choosing whether to apply the HTE.
- The 2020 final regulations apply the GILTI HTE on a “tested unit” and “all or nothing” basis
- The 2020 proposed regulations would conform the Subpart F HTE to the finalized GILTI HTE, creating a single unified HTE for both regimes
- The decision whether to elect the GILTI HTE must balance implications under other TCJA provisions and possibly the CARES Act
Click here to read the full advisory.
