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OIRA review completed; proposed regulations under section 250 for FDII deductions

OIRA review completed; regulations under section 250

OMB’s Office of Information and Regulatory Affairs (OIRA) has reported that it has completed review of proposed regulations from the U.S. Treasury Department as guidance under section 250 concerning the deductions for “foreign-derived intangible income” (FDII) and “global intangible low-taxed income” (GILTI).


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The regulations are described on the OIRA website as follows:

Regulations providing guidance regarding the deductions for foreign derived intangible income and global intangible low-taxed income.

Treasury regulations that are identified as “major” regulations are subject to review by OMB’s OIRA before issuance, pursuant to Executive Order 13771. The U.S. Treasury Department and IRS would be expected to release the FDII proposed regulations now that OIRA review is finished.


A provision of the U.S. tax law (Pub. L. No. 115-97, date of enactment December 22, 2017) allows a U.S. corporation a deduction equal to 37.5% of its FDII. The deduction for FDII is limited when the GILTI inclusion (including the section 78 gross-up for foreign taxes attributable to the GILTI inclusion) and the FDII exceed the corporation’s taxable income, determined without regard to the GILTI and FDII deductions.

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