GILTI and FDII Calculations

Review the fundamentals of the global intangible low-tax income (GILTI) and the foreign-derived intangible income (FDII) tax regimes. GILTI and FDII were both created by the Tax Cuts and Jobs Act of 2017 (TCJA). Pub. L. No. 115-97. The TCJA enacted I.R.C. Section 951A, which requires U.S. shareholders who own (within the meaning of I.R.C. Section 958(a)) a CFC to include GILTI in gross income. Form 8992 is used by a U.S. shareholder to calculate the amount of the GILTI inclusion and to report related information. 

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Related Content 

• GILTI and FDII Fundamentals
  Review the fundamentals of GILTI and FDII tax regimes. GILTI and FDII were both created by the Tax Cuts and Jobs Act of 2017 (TCJA). Pub. L. No. 115-97.

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• Tax Key Legal Developments Tracker (Federal)
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  • Business Entities. The Inflation Reduction Act of 2022 (Pub. L. No. 117-169), among other provisions, imposes an alternative minimum tax on corporations that earn more than $1 billion in annual profit, but do not pay at least a 15% tax rate. See Summary: Closing Tax Loopholes in the Inflation Reduction Act of 2022.
  • Business Entities. IRS and Treasury issue final regulations relating to the requirements for making a valid election to adjust the basis of partnership property in the case of a distribution of property by the partnership or a transfer of an interest in the partnership. The regulations affect partnerships and their partners by removing a regulatory burden in making an election to adjust the basis of partnership property. See Streamlining the Section 754 Election Statement, 87 Fed. Reg. 47931 (Aug. 5, 2022); D. 9963, RIN 1545-BN94.
  • Individual Income Tax. IRS modifies and supersedes Rev. Proc. 2006-36, 2006-38 I.R.B. 498 (Sept. 18, 2006), to update the procedures for other government agencies or members of the public to ask IRS to create special statistical studies and compilations involving return information pursuant to I.R.C. § 6108(b), and to set forth criteria for determining reasonable fees for costs associated with creation of special statistical studies and compilations. Proc. 2022-29.
  • Excise Taxes and Credits. The Inflation Reduction Act of 2022 (Pub. L. No. 117-169), amends the Qualified Plug-in Electric Drive Motor Vehicle Credit in R.C. § 30D, now known as the Clean Vehicle Credit, adding a new requirement for final assembly in North America that takes effect on August 16, 2022, with additional provisions becoming effective on January 1, 2023.
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