close
Share with your friends

Regulations pending OIRA review: Proposed regulations under section 245A

Proposed regulations under section 245A

OMB’s Office of Information and Regulatory Affairs (OIRA) reported it has received for review from the U.S. Treasury Department proposed regulations as guidance under section 245A—a provision added to the Code by the 2017 tax law (Pub. L. No. 115-97) that is also known as the “Tax Cuts and Jobs Act” (TCJA).

1000

Related content

The 2017 tax law added new section 245A to establish a participation exemption system for the taxation of foreign income.

Section 245A allows a domestic corporation that is a U.S. shareholder (as defined in section 951(b)) of a specified 10% foreign corporation a 100% dividends received deduction (DRD) for the foreign-source portion of dividends received from the foreign corporation (a 100% DRD). The 100% DRD is available only to domestic C corporations that are neither real estate investment trusts nor regulated investment companies.

According to OIRA, the proposed regulations were received for review on May 29, 2019, and are identified as follows:
 


OIRA, earlier this month, reported having received for review from the U.S. Treasury Department an “interim final rule” as guidance under sections 91 and 245A, concerning DRD issues under section 245A and branch loss recapture issues under section 91. Read TaxNewsFlash

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal