Share with your friends

KPMG reports: California (apportionment); New Jersey (GILTI and FDII); Utah (foreign tax credit)

KPMG reports: California, New Jersey, Utah

KPMG’s This Week in State Tax—produced weekly by KPMG’s State and Local Tax practice—focuses on recent state and local tax developments.


Related content

  • California: The Franchise Tax Board issued a chief counsel ruling concluding that gain recognized from an IRC section 338(g) election (the election to treat the purchase of the target corporation’s stock as a purchase of the target’s assets) must be reported by the target entity on its final return and apportioned to California using its own apportionment factors.
  • New Jersey: The Division of Taxation released a technical bulletin (TB-92 issued August 22, 2019), addressing New Jersey’s treatment of global intangible low-taxed income (GILTI) and foreign-derived intangible income (FDII). TB- 92 replaces prior state guidance and sets forth a substantially revised policy concerning the apportionment method for GILTI and FDII.
  • Utah: The state’s high court reviewed a constitutional challenge to Utah’s individual income tax structure, as it applies to foreign and interstate business income of S corporation shareholders. The taxpayers, residents of Utah, were shareholders in an S corporation that generated about 98% of its income from activities outside of Utah. The state’s individual income tax, as is typical with state income taxes on individuals, taxes residents on all income whether generated within Utah, another state, or a foreign country. Also, as is typical with state income taxes on individuals, Utah provides residents with a credit against their Utah tax for income taxes paid to other states, but not for taxes paid to foreign jurisdictions—and was therefore challenged by the taxpayers.

Read more at KPMG's This Week in State Tax

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained 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