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TD 9902: Guidance Under Sections 951A and 954 Regarding Income Subject to a High Rate of Foreign Tax

Date: 2020-07-23
Links to Federal Register: HTML, PDF (Proposed Regulation: REG-104390-18 / REG-101828-19 HTML, PDF)
Document Number: 2020-15351, RIN: 1545-BP15
Action: Final regulations.

Abstract: This document contains final regulations under the global intangible low-taxed income and subpart F income provisions of the Internal Revenue Code regarding the treatment of income that is subject to a high rate of foreign tax. The final regulations affect United States shareholders of foreign corporations. This guidance relates to changes made to the applicable law by the Tax Cuts and Jobs Act, which was enacted on December 22, 2017.

Word frequency
Notable phrases   Frequency
tested unit      285
tentative (gross) tested income      159
GILTI high-tax exclusion      81
effective foreign tax rate      72
allocated and apportioned      69
taxes paid or accrued      43
set of books and records      35
CFC inclusion year      35
reflected on the books and records      27
high-tax exception of section 954(b)(4)      16
(give) rise to a taxable presence      13
properly reflected on the separate set of books and records      10
subject to an effective foreign tax rate      9
subject to a high rate      9
maximum rate of tax specified in section 11      9
tax law of the foreign country      7
treated as a single tested unit      7
law of the foreign country      7

Reg. Cites   Frequency
1.951A-2(c)(7)(viii)(C)      21
1.951A-2(c)(7)(viii)(A)(1)(i)      19
1.960-1(d)(3)      8
1.960-1(d)(3)(ii)      7
1.904-4(f)(2)(vi)      6
1.861-8      5
1.904-6(a)(1)      5
1.904-6(a)(2)      5
1.861-9T(j)      5
1.861-9(j)      5
1.960-1(b)(4)      4
1.954-1      4
1.951A-7(b)      4
1.954-1(d)(3)(i)      4
1.951A-2(c)(1)(iii)      4
1.954-1(d)(7)      3
1.964-1(c)(3)(iii)      3
1.951A-2(c)(7)(viii)(A)(1)      3
1.951A-2(c)(5)      3
1.951A-2(c)(7)(iv)(A)(3)      3

Sec. Cites   Frequency
954(b)(4)      59
951A      22
951A(c)(2)(A)(i)(III)      14
904      10
904(b)(4)      9
960(d)      7
951      7
1504(a)      5
951(a)(1)      3
989(a)      3
245A      3
958(a)      3
958(a)      3
6227      2
318(a)      2
1504(b)(1)      2
954(c)(6)      2

Authorities Referenced:


Statistics

Number of pages: 30, words: 34,339, sentences: 1,009
Average words per sentence: 34