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This is the second course in a two-part series that covers the principal 2017 Tax Cuts and Jobs Act changes affecting US-based businesses operating internationally.  The 2017 Act drastically changed the tax rules applicable to US companies operating offshore. Those changes include the implementation of new regimes including the new “territorial” system, GILTI (global intangible low-taxed income), FDII (foreign-derived intangible income), elimination of the indirect deemed paid foreign tax credit, “anti-hybrid” limitations, and the BEAT (base erosion anti-abuse tax).  Existing regimes, such as the subpart F controlled foreign corporation rules and the PFIC passive foreign investment company) provisions, were largely left intact.

There are numerous ambiguities in the 2017 Act, and the new provisions often don’t mesh well with each other and with the pre-2017 Act provisions. IRS and Treasury have been working to address outstanding issues through regulations and other guidance, but legislative action will be necessary to address many of the outstanding problems. Thus, US-based international businesses and their management and finance organizations face an uncertain climate that is likely to persist for several years.

This course analyzes new regimes instituted by the 2017 Act, including GILTI, FDII, the Beat, the expanded business interest deduction limitation of Section 163(j), the Section 267A anti-hybrid rules, and the transition tax on previously deferred earnings and profits.  It reviews existing Treasury and IRS guidance regarding these regimes, and provides practical insights into issues that are of concern to US based multinationals and other corporations operating on a global basis. It also provides insight into likely future global tax developments, from a US standpoint and that of other taxing jurisdictions.  The companion course, though not a prerequisite to this course, provides a helpful foundation that will be of particular assistance to students that aren’t tax professionals. It focuses on the conditions that led to enactment of the 2017 Act through a historical framework, and it reviews legislative objectives the 2017 Act was intended to address.  It also analyzes systemic changes made by the Act, including modifications to the foreign tax credit system and introduction of the participation exemption dividends received deduction.

While tax professionals will find the technical aspects of these courses helpful in navigating the new 2017 tax act rules, these courses are sufficiently broad to be useful to other finance and accounting executives and managers that have responsibility for or are otherwise interested in tax.

The first course in the series can be found here.

Course Key Concepts: Tax, International Tax, Tax Cuts and Jobs Act, GILTI, FDII, BEAT, Foreign Tax Credit, Anti-hybrid, Business Interest, Subpart F, Controlled Foreign Corporation

Learning Objectives

  • Explore the principal tax regimes introduced by the 2017 Tax Cuts and Jobs Act that apply to US businesses operating internationally
  • Identify potential tax hazards and uncertainties arising under regimes created by the 2017 Tax Cuts and Jobs Act
  • Recognize potential impacts of the 2017 Tax Cuts and Jobs Act on corporate tax and finance functions.
Last updated/reviewed: January 12, 2020

Prerequisites

Course Complexity: Advanced
  • No advanced preparation or prerequisites are required for this course.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  3:54Course Overview and Introduction
  6:25GILTI AND FDII
  10:28GILTI Continued
  13:27FDII
  10:36The BEAT
  8:06Section 163(j) Business Interest Limitation
  15:22Sec 267A Anti-Hybrid Rules
  4:09Sec. 965 Transition Tax
  6:20Where Might We Go From Here?
Continuous Play
  1:17:54Regimes Introduced by The 2017 Act, and Prospects for Future Changes
Supporting Materials
  PDFSlides: Regimes Introduced by the 2017 Act, and Prospects for Future Changes
  PDFRegimes Introduced by the 2017 Act, and Prospects for Future Changes Glossary/Index
Review And Test
  quizREVIEW QUESTIONS
 examFINAL EXAM