IRS issues guidance on GILTI high-tax exclusion
The Treasury and IRS have issued final regulations (T.D. 9902) allowing taxpayers to exclude certain high-taxed income of a controlled foreign corporation (CFC) from their global intangible low-taxed income (GILTI) computation on an elective basis. Proposed regulations (REG-127732-19) were also released, which conform the provisions addressing high-taxed subpart F income to the final rules implementing the GILTI high-tax exclusion. The final regulations give taxpayers the ability to retroactively apply the GILTI high-tax exclusion on an amended return and claim refunds for overpayments of tax in prior years.
Detailed commentary from Andersen US on the final and proposed regulations can be found at the following link.