Final regulations: Deduction under section 250, FDII and GILTI (text of regulations)

Deduction under section 250, FDII and GILTI

The U.S. Treasury Department and IRS today released for publication in the Federal Register final regulations (T.D. 9901) concerning the deduction for “foreign-derived intangible income” (FDII) and “global intangible low-taxed income” (GILTI).


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The FDII and GILTI deduction provisions under section 250 were added to the Code by the tax law enacted in December 2017 (Pub. L. No. 115-97)—the law that is often referred to as the “Tax Cuts and Jobs Act” (TCJA).

Read the final regulations [PDF 590 KB] (76 pages as published in the Federal Register on July 15, 2020)

Proposed regulations (REG-104464-18) relating to the deduction for FDII and GILTI under section 250 were released in March 2019. Read KPMG’s report of initial impressions about those proposed regulations: TaxNewsFlash

According to the preamble, the final regulations retain the basic approach and structure of the proposed regulations, with certain revisions. The final regulations were published in the Federal Register on July 15, 2020. The purpose of this report is to provide text of the final regulations.

Read a related IRS release: IR-2020-147

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