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Regulations pending OIRA review: GILTI provisions under sections 951(b) and 951A

Regulations pending OIRA review: GILTI provisions

OMB’s Office of Information and Regulatory Affairs (OIRA) today reported it has received for review from the U.S. Treasury Department final and proposed regulations as guidance regarding the inclusion of global intangible low-taxed income (GILTI) by U.S. shareholders under sections 951(b) and 951A.

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The 2017 tax law (Pub. L. No. 115-97, enacted December 22, 2017) generally retained the existing subpart F regime that applies to passive income and related-party sales, but created a new, broad class of income—“global intangible low-taxed income” (GILTI).

  • GILTI is deemed repatriated in the year earned and, thus, is also subject to immediate taxation.
  • GILTI income is effectively taxed at a reduced rate while subpart F income is taxed at the full U.S. rate.
  • In general, GILTI is the excess of all of the U.S. corporation’s net income over a deemed return on the controlled foreign corporation’s (CFC’s) tangible assets (10% of depreciated tax basis).

Today’s posting by OIRA reflects that the GILTI regulations were received May 16, 2019.

  • RIN: 1545-BO54: Guidance related to section 951A (global intangible low-taxed income regulations)
  • RIN: 1545-BP15: Guidance under sections 951(b) and 951A

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